Three Property Rule Planning
Plan your identification strategy using the three property rule for maximum flexibility.
Three property rule planning helps Jacksonville, FL investors understand and implement the IRS rule that allows identification of up to three replacement properties regardless of value. We provide guidance on property selection and identification letter preparation. Investors have 45 calendar days from the sale of their relinquished property to identify replacement properties in writing, and 180 calendar days to close on one or more of those properties. We coordinate with Qualified Intermediaries to ensure proper escrow handling and documentation throughout the exchange process.
Related Services
Multifamily Property Identification
Find garden, mid-rise, and mixed-income multifamily properties across Duval, Clay, and St. Johns counties.
Industrial Warehouse Identification
Locate warehouse, flex, and cold storage sites supporting JAXPORT, Cecil Commerce, and I-95 corridors.
Retail NNN Property Identification
Find coastal strip centers, single-tenant NNN, and hospitality assets near ports and interstates.
Medical Office Identification
Locate health campuses, surgery centers, and professional condos with long-term credit tenants.
What We Include
- •Three property rule explanation and eligibility
- •Property selection criteria guidance
- •Identification letter template preparation
- •Qualified Intermediary coordination
- •45 day identification deadline tracking
- •180 day closing deadline coordination
- •Boot planning considerations
- •Exchange documentation support
Common Situations
Investor seeking flexibility to identify multiple replacement properties without value restrictions
Portfolio owner planning to close on one or more of three identified properties
Investor preferring the simplicity of the three property rule over value calculations
Frequently Asked Questions
How does the three property rule work in Jacksonville?+
The three property rule allows investors in Jacksonville, FL to identify up to three replacement properties regardless of their combined value. You can close on one, two, or all three of the identified properties within the 180 day deadline.
What are the requirements for the three property rule?+
To use the three property rule in Jacksonville, FL, you must identify no more than three replacement properties in writing within 45 days of your relinquished property sale. The properties can be of any value, but you must close on at least one within 180 days.
Can I identify more than three properties?+
If you want to identify more than three properties in Jacksonville, FL, you must use the 200 percent rule instead. The three property rule limits you to exactly three properties, regardless of their combined value.
What happens if I receive boot under the three property rule?+
Boot received in a three property rule exchange in Jacksonville, FL is taxable up to the amount of capital gain realized. To defer 100 percent of the gain, reinvest the full net equity and replace equal or greater debt.
Educational content only. Not tax, legal, or investment advice. A 1031 exchange defers federal and Florida income tax on qualifying real property. It does not remove documentary stamp or transfer fees.
Ready to Get Started with Three Property Rule Planning?
Our Jacksonville-based team helps investors stay compliant, on time, and fully informed throughout the exchange process.