Identification Rules Checker
Validate your replacement property identification against IRS identification rules. You must satisfy at least one of three rules: the 3-property rule, the 200% rule, or the 95% rule. This tool helps ensure your identification complies with IRS requirements.
Identification Rules Checker Inputs
Total number of replacement properties identified
Sum of all identified property values
Sale price of the relinquished property
Understanding Identification Rules
3-Property Rule:
You can identify up to 3 replacement properties without any value limits. This is the simplest rule - if you identify 3 or fewer properties, you don't need to worry about value calculations.
200% Rule:
If you identify more than 3 properties, the total value of all identified properties cannot exceed 200% of the relinquished property value. This allows flexibility when identifying multiple properties.
95% Rule:
If you identify properties under the 200% rule, you must acquire at least 95% of the total identified value. This ensures you actually purchase most of what you identified.
Important: You must satisfy at least one of these rules. The 3-property rule is the most straightforward for most exchanges.
Educational content only. Not tax, legal, or investment advice. Results are estimates only. Consult a qualified intermediary and tax advisor before making decisions. Colorado does not impose a state real estate transfer tax. Recording fees and title insurance premiums still apply.