1.800.TIC.1031 | 1031REALESTATEEXCHANGES.NET
 

1031 Real Estate Exchange Requirements


1031 Real Estate Exchange Requirement

To fully defer all capital gain taxes, the 1031 real estate exchange must meet four 1031 Real Estate Exchange Requirements:

Reinvest 100% of Proceeds: The value of the 1031 property being purchased must be equal to or greater than the value of the rental property being sold.

  • Debt on replacement rental property is equal to or greater than the debt on the relinquished rental property.

  • Third 1031 Real Estate Exchange Requirement: exchangers must use a Qualified Intermediary. An Intermediary will hold the funds and provide technical experience to maintain the integrity of the exchange.

  • Fourth 1031 Real Estate Exchange Requirement: Exchanged rental properties must be like kind. The IRS definition of Like-Kind is any rental property held for productive use in a trade or business or held for investment purposes.

    The successful completion of a 1031 real estate exchange into tenants in common ownership is best facilitated by a 1031 real estate advisor who specializes as a Replacement rental property Specialties. Contact us today to complete your 1031 real estate exchange.




    Popular tags