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nonsimultaneous like-kind exchange, the taxpayer must identify
replacement property to be received in the exchange within 45
days after the date the taxpayer transfers the property
relinquished in the exchange. Sec. 1031(a)(3)(A). In this case,
the 45-day period ended on October 6, 1989.
The parties dispute whether petitioners timely identified
either the Pleasant Hill or Skyland properties as replacement
properties. Petitioners contend that they discussed Pleasant
Hill and Skyland with each other during the identification
period. Petitioners further allege that they drove by the
properties while under construction and that petitioner husband
toured the construction site and inquired about building plans
with construction workers. Petitioners concede that they never
indicated that they were interested in acquiring Pleasant Hill or
Skyland to the prior owners of either property, their exchange
intermediary/attorney, Mr. Clack, or any of their numerous real
estate agents. Petitioners contend that identification of
replacement property to each other was sufficient to meet the
identification requirement of section 1031(a)(3)(A). Respondent
contends that petitioners did not consider purchasing Pleasant
Hill or Skyland during the identification period, and even if
they did, petitioners did not adequately identify either
property.
Section 1031(a)(3) provides:
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