■ Exchange Period: The Exchanger must receive the Replacement Property within the earlier of 180 days after the date on which the Exchanger transferred the fi rst Relinquished Property, of the due date (including extensions) for the Exchanger's tax return for the tax year in which the transfer of the fi rst Relinquished Property occurs.

■ Identification Period: The Exchanger must identify the Replacement Property to be acquired by the end of the Exchange Period within 45 days of the transfer of the first Relinquished Property.

■ The time periods for the 45-day Identification Period and the 180-day Exchange Period are very strict and cannot be extended even if the 45th day or 180th day falls on a Saturday, Sunday or legal holiday.

■ Completing the purchase of the Replacement Property within the Identifi cation Period; or

■ Identified in a written document (“Identification Notice”) signed by the Exchanger and hand delivered, mailed, telecopied, or otherwise sent by midnight of the 45th day, which is the end of the Identification Period.

■ The person obligated to transfer the Replacement Property to the Exchanger, even if that person is a disqualifi ed party. Examples of persons obligated to transfer the Replacement Property to the Exchanger are the seller of the Replacement Property or the Exchanger’s Qualifi ed Intermediary; or

■ To any other person involved in the exchange other than the Exchanger or a disqualifi ed party. Examples of persons who are involved in the exchange and who are not considered disqualifi ed parties are an escrow, settlement or title offi cer or a person who is providing the Exchanger with services solely relating to the exchange of property.

The Identification Notice must contain an unambiguous description of the Replacement Property and must be signed by the Exchanger. A fully executed purchase and sale agreement specifying the Replacement Property may satisfy these requirements. Otherwise, in the case of real property, the Identifi cation Notice must include the legal description, a street address or a distinguishable name. In addition, when the Exchanger intends to improve the Replacement Property during the Exchange Period the Exchanger must include an adequate description of the underlying land and a description in as much detail as is practicable at the time of the identifi cation of the proposed construction or improvements. When identifying Replacement Property in a real property exchange, any personal property included in the purchase that has a value of less than 15% of the total value of the Replacement Property is considered incidental and does not need to be separately identifi ed. An identification of Replacement Property may be revoked prior to the end of the Identifi cation Period. The revocation must be done in a writing signed by the Exchanger and made to the same person to whom the original identifi cation notice was sent.

Exchangers have the fl exibility of identifying more than one property as Replacement Property for their exchange. The options for identifi cation are:

■ Three Property Rule: The Exchanger may identify as potential Replacement Property any three properties, without regard to their fair market value.

■ 200% Rule: The Exchanger may identify as potential Replacement Property any number of properties provided the aggregate fair market value of all of the identifi ed properties does not exceed 200% of the aggregate fair market value as of the date of the transfer of all of the Relinquished Properties.