1031 Exchange Requirements




1031 Exchange Requirement

Four requirements for all 1031 exchanges and TIC exchanges:

  • One hundred percent of the value of the relinquished rental property must be reinvested in the like kind rental property or rental properties at the time of the exchange.

  • The amount of equity held in the relinquished rental property must be less than the amount of equity held in the new, replacement rental property or rental properties.

  • Third 1031 Exchange Requirement: exchangers must use a Qualified Intermediary in order to hold all proceeds and maintain the integrity of the exchange. It is worthy to note that this person is NOT allowed to give any legal or investment advice during the transaction.

  • Fourth 1031 Exchange Requirement: exchanged rental properties must be like kind rental properties, as defined by the IRS. Any Like-Kind rental property is one which is held for productive use in a trade or business or held for investment purposes.

    So many 1031 exchanges into TIC ownership are so successful because they are facilitated by a net lease with option broker. Contact us today to complete your 1031 exchange.


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