1031EXCHANGECOMPANIES.NET
1031EXCHANGECOMPANIES.


1031 Exchange Requirement

All 1031 exchanges, including tenants in common exchanges, must adhere to the following requirements:

  • The total money reinvested into the like kind investment property must equal or be greater than the value of the relinquished investment property. In other words, 100% of the assets from the sale of the first investment property must be rolled into the second investment.

  • The amount of equity ( investment property value minus loan amt. ) of the acquired investment property must be equal to or greater than that of the investment property being sold.

  • Third 1031 Exchange Requirement: exchangers must use a Qualified Intermediary. The Intermediary is the entity that structures, consults, guides and documents the exchange transaction from beginning to end. An Intermediary will hold the funds and provide technical experience to maintain the integrity of the exchange.

  • Fourth 1031 Exchange Requirement: The investment property exchanged must be of like-kind. Many people misunderstand this provision, thinking it must be a direct swap. But the requirements are a little more generous. It is possible, for example, to exchange a vacant piece of land for an improved piece and still meet the requirements for like-kind investment property.

  •      

    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