Discussion:1031 Exchange Guidelines
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| 24 July 2008 | |
| IRC 1031 Guidelines:
Like Kind Property Sales proceeds from the relinquished property must be reinvested into a replacement property or properties of equal or greater value. Seller may opt for one of three identification strategies: 3 Property Rule The Seller may identify up to (3) properties totaling the equal or greater value of the relinquished property. 200% Rule The Seller may identify any number of properties as long as the fair market value of the replacement properties does not exceed 200% of the fair market value of the relinquished property. 95% Rule The Seller may identify any number of properties as long as the seller closes on at least 95% of the identified properties before the end of the 180-day exchange period. 45-Day Identification Period Seller must identify replacement properties within 45 days from the date the relinquished property was transferred. 180-Day Exchange Period Acquisition must begin within 180 days of the close of escrow of the sold property. | |
