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1031 Exchange Requirements


  • Reinvest 100% of proceeds:The value of the investment investment property being purchased must be equal to or greater than the value of the investment property being sold.

  • The equity ( investment property value minus loan balance) in the new investment property must also be equal to or greater than the equity in the old investment property. In other words, the loan amount on the new investment property must be equal to or greater than the loan amount on the investment property being sold.

  • 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.




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