The 45-day identification deadline is the #1 reason 1031 exchanges fail. This worksheet helps you evaluate, compare, and document your identified properties systematically - so you submit your identification letter with confidence.
Your Exchange Details
Field | Value |
|---|---|
Relinquished property sale price | $_____ |
Selling costs | $_____ |
Net sale price (amount realized) | $_____ |
Existing debt paid off at closing | $_____ |
Exchange equity held by QI | $_____ |
Day 0 (closing date) | _____ |
Day 45 deadline | _____ |
Day 180 deadline | _____ |
Minimum Replacement Requirements (for full deferral)
Requirement | Amount |
|---|---|
Minimum replacement property value | $_____ (must equal or exceed net sale price) |
Minimum replacement debt | $_____ (must equal or exceed relinquished debt, or add cash) |
Property Evaluation Grid
Complete one column for each potential replacement property. Evaluate more than three - you'll narrow to your final identifications.
Criteria | Property A | Property B | Property C | Property D | Property E |
|---|---|---|---|---|---|
Address/Location | |||||
Property type | |||||
Purchase price | |||||
Estimated closing costs | |||||
Total acquisition cost | |||||
Projected annual income (NOI) | |||||
Cap rate | |||||
Monthly cash flow (after debt service) | |||||
Financing available? | Y/N | Y/N | Y/N | Y/N | Y/N |
Estimated mortgage amount | |||||
Interest rate / terms | |||||
Estimated time to close | |||||
Inspection completed? | Y/N | Y/N | Y/N | Y/N | Y/N |
Major concerns / risks | |||||
Backup if deal falls through? | Y/N | Y/N | Y/N | Y/N | Y/N |
Identification Rules Quick Reference
3-Property Rule (most common): Identify up to 3 properties of any value. You must close on at least one.
200% Rule: Identify any number of properties, but their total value cannot exceed 200% of your relinquished property sale price. (Your limit: $___ × 2 = $___)
95% Rule: Identify any number of properties of any value, but you must close on at least 95% of the total identified value. (High risk - don't use unless you're confident in closing.)
Final Identification Selections
Slot | Property address | Estimated value | Confidence level |
|---|---|---|---|
1 (Primary) | $_____ | High / Medium / Low | |
2 (Backup) | $_____ | High / Medium / Low | |
3 (Safety net) | $_____ | High / Medium / Low |
Identification letter submitted to QI: [ ] Yes, on ___ (date) Confirmation received from QI: [ ] Yes, on ___ (date)
Pro tips:
- Always use all three identification slots. Don't identify just one property.
- Consider listing a DST as your third identification for a fast-closing safety net.
- Submit your identification letter well before Day 45 - don't wait until the last hour.
- Keep a copy of the letter with a timestamp (email delivery receipt, fax confirmation, or certified mail receipt).