Identification Rules Consultation

Identification rules consultation service helps Chicago, IL investors understand and choose between the three property rule, two hundred percent rule, and ninety five percent rule for structuring compliant identification letters. This service provides strategic guidance and written compliance memos explaining each identification strategy and how to structure identification letters that meet IRS requirements.

Our team works with Chicago, IL investors to understand their exchange objectives, property preferences, and identification timeline. We coordinate with Qualified Intermediaries and tax advisors to provide written compliance memos explaining each identification rule and how to structure identification letters. The service includes deadline monitoring and coordination with qualified escrow agents to facilitate compliant closings within the one hundred eighty day window.

Identification rules consultation is ideal for Chicago, IL investors who need clarity on identification strategies and want written documentation explaining their options. We help investors understand the three property rule, two hundred percent rule, and ninety five percent rule requirements, timing deadlines, and documentation needs to maintain exchange compliance throughout the transaction.

What We Include

  • Strategic identification rules consultation
  • Written compliance memos explaining three property, two hundred percent, and ninety five percent rules
  • Coordination with Qualified Intermediary and tax advisors
  • Identification letter structure guidance
  • Deadline monitoring for forty five day and one hundred eighty day milestones
  • Qualified escrow coordination for property acquisitions
  • Exchange documentation support
  • Stakeholder coordination and updates

Common Situations

Chicago, IL investor selling property and needs identification rules consultation to understand which identification strategy best fits their situation

Investor wants written compliance memos explaining identification rules and needs guidance structuring identification letters

Investor with multiple property preferences and needs consultation to choose appropriate identification rule

Example of the type of engagement we can handle

Service Type

Identification Rules Consultation

Scope

Provide identification rules consultation and written compliance memos explaining three property, two hundred percent, and ninety five percent rules for Chicago investor structuring identification letter

Client Situation

Investor selling Chicago multifamily property and needs identification rules consultation to understand which identification strategy best fits their situation before submitting identification letter within forty five day deadline

Our Approach

Consult with investor to understand exchange objectives and property preferences, provide written compliance memos explaining each identification rule, coordinate with Qualified Intermediary and tax advisors, guide identification letter structure, monitor deadlines

Expected Outcome

Investor receives written compliance memos explaining identification rules and guidance structuring identification letter that best fits their situation, all documentation properly coordinated with Qualified Intermediary

Educational content only. Not tax, legal, or investment advice.

Frequently Asked Questions

What identification rules are available for Chicago, IL investors?
Chicago, IL investors can use the three property rule, two hundred percent rule, or ninety five percent rule when structuring identification letters. Our identification rules consultation service helps Chicago, IL investors understand each rule and choose the strategy that best fits their exchange objectives and property preferences.
How does boot affect Chicago, IL investors using identification rules consultation?
Boot for Chicago, IL investors can occur if cash is received, debt is reduced, or personal property is included in the transaction, regardless of which identification rule is used. Our identification rules consultation service documents all potential boot sources, but investors should work with their tax advisors to calculate the correct tax impact for their specific exchange situation.
Can Chicago, IL investors switch identification rules after submitting identification letters?
Chicago, IL investors generally cannot switch identification rules after submitting identification letters to their Qualified Intermediary. Our identification rules consultation service helps Chicago, IL investors choose the appropriate rule before submitting identification letters to ensure compliance and avoid exchange failure.
What happens if Chicago, IL investors choose the wrong identification rule?
If Chicago, IL investors choose the wrong identification rule, the exchange may fail and taxes become due. Our identification rules consultation service helps Chicago, IL investors understand each rule and choose the strategy that best fits their situation before submitting identification letters.
How does identification rules consultation help Chicago, IL investors meet timing deadlines?
Identification rules consultation helps Chicago, IL investors meet timing deadlines by providing clarity on identification strategies and coordinating with Qualified Intermediaries to ensure proper documentation. Our service monitors the forty five day identification deadline and one hundred eighty day closing deadline to help Chicago, IL investors maintain compliance.
What is the one hundred eighty day deadline for Chicago, IL investors?
The one hundred eighty day deadline for Chicago, IL investors is the maximum time allowed to acquire replacement properties after the relinquished property sale closes, regardless of which identification rule is used. Our service monitors this deadline and coordinates with qualified escrow agents to ensure timely closings that meet IRS requirements.

Ready to Get Started?

Contact our team to discuss how Identification Rules Consultation can support your 1031 exchange in Chicago, IL. We'll help you navigate the 45-day identification deadline and 180-day closing requirement.