[ Home ]   1.800.TIC.1031   1031EXCHANGEEXPLAINED.NET
 



1031 Exchange Rules

All 1031 exchanges must comply with at least one of the following three 1031 rules in order to qualify as such:

  • 1) The Three-Income Property Rule - This rule allows the exchanger to identify up to a total of 3 potential replacement income properties within the Acquisition Period.

  • The Two Hundred Percent Rule - Stipulates that, if three or more replacement income properties are used in the exchange, their aggregate value must not exceed 200% of the value of the income property that is being relinquished.

  • The Ninety-five Percent Exception - Finally, if circumstances are such that rules 1 and 2 do not apply, the aggregate value of the like kind replacement income properties must account for at least 95% of the value of the relinquished income property at the time of sale in order for the exchange to qualify.

    To find out more, contact us and we will put you in touch with a 1031 expert in your area.