1031 Exchange Requirements




1031 Exchange Requirement

Four requirements for all 1031 exchanges and tenant in common exchanges:

  • One hundred percent of the value of the relinquished income real estate must be reinvested in the like kind income real estate or income real estate at the time of the exchange.

  • The amount of equity held in the relinquished income real estate must be less than the amount of equity held in the new, replacement income real estate or 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 land realtor, contact us today!


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