Saturday, August 16, 2008 at 08:39PM | Staff Can I Change My Identified Properties After I have Identified Them to My Qualified Intermediary
It Depends!
You know the answer to this question don't you: It depends! That's my favorite answer to many 1031 exchange questions because it truly does cover most 1031 exchange answers. There are always so many variables involved in 1031 exchange transactions that the answer truly does depend on all of the variables.
So, it all depends on where you are with your 1031 exchange transaction. Have you closed on your relinquished property? Are you still in your 45 day identification period or are you beyond your 45 day ID period? Are you in compliance with one of the identification rules or exceptions?
45 Day ID Period
You must identify your potential replacement properties to your 1031 exchange Qualified Intermediary during the 45 calendar day identification period. And, the answer to the question is generally yes. You can change your mind as often as you wish and identify other properties as long as you are still inside your 45 day ID period.
Identification Revocation
Should you decide to change your mind during the 45 day ID period you need to formally revoke your identification and then reidentify your new choices for replacement property. It is important that you revoke your original ID otherwise you will have identified more than once and the total number of properties will exceed the maximum number of identified properties permitted under the Treasury Regulations.
You can not change your mind after your 45 day ID period has passed. You must acquire one or more of the replacement properties that are on your replacement property identification to your 1031 exchange Qualified Intermediary. Beware of 1031 exchange Qualified Intermediaries that will allow you to change or alter your identification form after the 45 day ID period.
