1031 Exchange Requirements




1031 Exchange Requirement

There are four distinct requirements applicable to all 1031 exchanges :

  • In order to qualify as a 1031 exchange, 100% of the monies earned through the sale of any income real estate must be reinvested in the replacement income real estate.

  • Also, the amount of equity held in any like kind income real estate for reinvestment must be greater than or equal to that of the relinquished income real estate.

  • Third, each real estate investor must use a Qualified Intermediary (QI) to oversee the transaction. A QI is a qualified individual that prepares the paperwork, holds all proceeds from the transaction, and provides any technical advise on the exchange process.

  • Finally, all 1031 exchanges require the exchange of like kind income real estate for other like kind property. A definition of such may be found in internal revenue code.

    For more information on 1031 exchanges or tenant in common exchanges, or to be put in contact with a licensed 1031 tax expert, contact us today!


  • Access to TIC properties Nationwide!
    FREE!


    Name
    (First Last)*
    Email *
    Phone *
    My role*
    Status*
    Equity*
    Tell us about your situation
      
    * Indicates that these fields are required and must be filled in.
    your privacy assured