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Run a Missouri 1031 identification window as a procurement calendar with candidate sourcing, scoring, and a signed written notice on deadline.
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Closing coordination for Missouri 1031 exchange replacement property, run as a submittal schedule across title, lender, QI, and settlement.
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Three-property identification rule strategy for Missouri exchanges, covering candidate selection, backups, and when this rule fits better than.
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Structure a Missouri 1031 identification list under the 200 percent rule with a value ledger, candidate basket, and written notice control.
ExploreReplacement property identification is the formal step where candidates become a written list delivered to the qualified intermediary inside the 45-day window. The work here is preparing that letter correctly, with the right addresses, the right rule, and the right signature, not sourcing the candidates themselves. A well-prepared letter reads as a formality; a poorly prepared one can put the entire exchange at risk over a technicality.
Most Missouri exchanges use the three-property rule, identifying up to three replacement candidates regardless of value. Exchanges needing more candidates use the 200% rule, where combined value of all identified properties cannot exceed twice the START EXCHANGE REVIEW price, or the less common 95% rule, which requires acquiring ninety-five percent of the identified value. Rule selection is confirmed in writing before the letter is drafted.
Choosing the wrong rule for the exchanger's situation, such as trying to fit five moderately priced candidates under the three-property rule, is a preventable error that is caught during the rule-selection step rather than after the letter has already been sent.
The rule decision is documented in a short memo alongside the identification letter itself, so the reasoning behind the choice is on file if a question comes up later in the exchange.
Each candidate is described unambiguously, using a legal description or street address rather than a general area description, and the letter is signed and delivered to the qualified intermediary before midnight on day forty-five. A letter naming only a medical office building in Springfield without a specific address does not satisfy the identification requirement.
The letter is drafted from the title commitment or deed language for each candidate rather than from the marketing flyer, since minor discrepancies between a broker's description and the recorded legal description can create ambiguity that a stricter reading would not accept.
Every identification letter is checked against the same list before it is delivered.
Delivery confirmation is kept on file as proof the letter reached the QI before the forty-five day deadline, since a well-drafted letter delivered late does not satisfy the requirement.
A copy of the delivered letter, along with the confirmation record, is retained by the exchanger separately from the QI's own file, so there is an independent record if a question arises after closing.
Because Missouri property records and title practices vary between St. Louis metro, Columbia, Springfield, and smaller I-70 and I-44 corridor counties, the legal description on the identification letter is checked against the actual title commitment for each candidate before delivery, so there is no mismatch between what was identified and what closes.
A discrepancy between the identification letter and the eventual closing documents, even a minor one, is the kind of detail worth resolving before delivery rather than explaining after the fact.
Where a candidate's title commitment is still pending when the forty-five day deadline approaches, the best available legal description is used and updated later if a minor correction is needed before closing.
Once the identification letter is delivered, revisions are limited: a property can generally be dropped from the list, but adding a new candidate after day forty-five is not permitted under the identification rules. The exchanger's tax advisor or qualified intermediary should be consulted on any change contemplated after filing.
Because additions are not permitted after the deadline, the backup candidates kept in the internal file during drafting often become the fallback option if a top candidate's closing falls through later in the exchange period.
A candidate can generally be revoked from the list within the 45-day window, but new candidates cannot be added after day forty-five, so the letter should be treated as close to final when it is delivered. Backup candidates should be considered before the letter goes out, not after.
Identifying one or two candidates is permitted under the rule; there is no requirement to use all three slots, though most exchangers include backups in case a lead candidate falls through in diligence. The unused slot simply goes unfilled.
No. Identification requires unambiguous description, typically the legal description or street address, so a general area description does not meet the requirement. The letter is drafted from title or deed language for this reason.
No. Identification only requires naming the candidate property; a purchase contract is not required until the exchanger moves toward closing on the chosen replacement. Many exchangers still prefer to have contracts in progress by the deadline.
If combined value of the five candidates stays within twice the START EXCHANGE REVIEW price, the 200% rule applies; if it exceeds that threshold, the 95% rule requires acquiring ninety-five percent of the identified value, which is a stricter standard worth reviewing with a tax advisor first.