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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>On behalf of Jeff Helsdon<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='color:#1F497D'>John McCrady<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Puget Sound Title Company<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>5350 Orchard Street West<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>University Place WA 98467<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>253-476-5721<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>j.mccrady@pstitle.com<o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> Jeff Helsdon [mailto:jhelsdon@thehelsdonlawfirm.com] <br><b>Sent:</b> Tuesday, September 19, 2017 4:04 PM<br><b>To:</b> John McCrady <j.mccrady@pstitle.com><br><b>Subject:</b> FW: [WSBARP] 1031 Exchange question re: identifying replacement property<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a name="_MailEndCompose"><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></a></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Cordially,<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Jeffrey Paul Helsdon<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>(253) 564-1856 (Main)<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>(253) 414-3525 (Direct)<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>(253) 677-1031 (Cell)<o:p></o:p></span></p></div><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> Jeff Helsdon <br><b>Sent:</b> Tuesday, September 19, 2017 10:50 AM<br><b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>>; <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a><br><b>Subject:</b> RE: [WSBARP] 1031 Exchange question re: identifying replacement property<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>In order to constitute a valid identification of replacement property, and thereby satisfy the identification requirement, the taxpayer must specifically identify the replacement property as replacement property in a written document and signed by the taxpayer. Treas. Reg. Section 1.1031(k)-1(c)(2). The taxpayer must either hand deliver, mail, fax, or otherwise send the signed identification document to a qualified recipient before the end of the identification period. Treas. Reg. Section 1.1031(k)-1(c)(2). A qualified recipient is (1) the person obligated to transfer the replacement property or (2) any other person involved in the exchange other than the taxpayer or a disqualified person (e.g., a qualified intermediary, an escrow agent, or a title company may constitute qualified recipients). Treas. Reg. Section 1.1031(k)-1(c)(2)(i), (ii). If all of the parties to an exchange sign the identification of the replacement property before the end of the identification period, the taxpayer will satisfy the delivery requirement. Treas. Reg. Section 1.1031(k)-1(c)(2).<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Backdating an identification constitutes tax fraud. Dobrich v. Comm’r, 188 F.3d 512 (9<sup>th</sup> Cir. 1999). Anyone willfully participating in that act is guilty of a felony and subject to a fine of up to $100,000.00 ($500,000.00 in the case of a corporation) and imprisonment of up to three years. IRC Section 7206(2).<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Cordially,<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Jeffrey Paul Helsdon<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>(253) 564-1856 (Main)<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>(253) 414-3525 (Direct)<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>(253) 677-1031 (Cell)<o:p></o:p></span></p></div><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Marc Holmes<br><b>Sent:</b> Tuesday, September 19, 2017 10:09 AM<br><b>To:</b> 'WSBA Real Property Listserv' <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>>; <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a><br><b>Subject:</b> [WSBARP] 1031 Exchange question re: identifying replacement property<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Short version: Is an offer to purchase sufficient identification of a replacement property for purposes of a 1031 exchange?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Client made an offer on a house contingent upon the sale of vacant land intending to do a 1031 exchange. Seller wouldn’t come down in price so it went nowhere. The land sale subsequently closed and proceeds were received by a 1031 facilitator. Later, client made a second offer on the property but again seller wouldn’t budge.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Fast forward to today and seller is willing to accept client’s offer but the 45 day period expired last Friday without client submitting anything formal to the 1031 facilitator to identify this or any other replacement property. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Facilitator is still holding the funds from the land sale and an employee thereof suggested back dating a new offer on the property to last Friday. That seems unethical or worse so I’m wondering if there’s another way.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Marc Holmes<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Holmes Law Group PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>2303 W. Commodore Way, # 306<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Seattle WA 98199<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><a href="http://holmeslawgroup.com/">HolmesLawGroup.com</a><span style='color:#1F497D'><o:p></o:p></span></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><a href="mailto:marc@holmeslawgroup.com">marc@holmeslawgroup.com</a><span style='color:#1F497D'><o:p></o:p></span></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Ofc: 206-357-4224<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Cell: 206-849-0853<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>