DEADLINES & IDENTIFICATION
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Three-property rule
Also called: 3-property rule · three property rule
An identification rule allowing up to three replacement properties regardless of their fair market value.
What it means in practice.
A taxpayer can generally identify three replacement properties without regard to their values. If more are identified, other identification tests become relevant.
Why it matters.
This is one of the most commonly used identification safe harbors.
Additional notes.
A taxpayer can generally identify three replacement properties without regard to their values. If more are identified, other identification tests become relevant.
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