1031.Exchange INTELLIGENCE NETWORK
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DEADLINES & IDENTIFICATION

200% rule

Also called: 200 percent rule · two hundred percent rule

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PLAIN-ENGLISH DEFINITION

An identification rule permitting any number of replacement properties when their total fair market value does not exceed 200% of the aggregate fair market value of the relinquished properties.

What it means in practice.

The percentage is measured using the relevant fair market values at the times specified in the regulations.

Why it matters.

This gives investors more than three identified options while imposing a value cap.

Additional notes.

The percentage is measured using the relevant fair market values at the times specified in the regulations.

PRIMARY / REFERENCE SOURCES

Read the source material.

irs.gov ↗irs.gov/publications/p544irs.gov ↗irs.gov/irb/2020-30_IRB
CONNECTED LANGUAGE

Related definitions.

Deadlines & IdentificationThree-property ruleAn identification rule allowing up to three replacement properties regardless of their fair market value.Deadlines & Identification95% ruleA narrow rule that may preserve an identification when too many properties were identified, if enough of the identified value is actually received.
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