1031 Exchange Requirements
1031 Exchange Requirement
Four requirements for all
1031 exchanges and
tenants in common exchanges:
One hundred percent of the value of the relinquished investment property must be reinvested in the like kind investment property or investment properties at the time of the exchange.
The amount of equity held in the relinquished investment property must be less than the amount of equity held in the new, replacement investment property or investment properties.
Third 1031 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 Exchange Requirement: Exchanged investment properties must be like kind. The IRS definition of Like-Kind is any investment property held for productive use in a trade or business or held for investment purposes.
The successful completion of a 1031 exchange into tenants in common ownership is best facilitated by a TIC advisor who specializes as a Replacement investment property Specialties. Contact us today to complete your 1031 exchange.