1031 Exchange Rules
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-Investment Property Rule - This rule allows the exchanger to identify up to a total of 3 potential replacement investment properties within the Acquisition Period.
The 200% Rule - States that, in the even that three or more like kind investment properties are selected in the transaction, their aggregate value must not exceed 200% of the value of the investment property that is being relinquished.
The 95% Exception - Stipulates that the aggregate value of any and all like kind replacement investment properties must account for at least 95% of the value of the relinquished investment property in order for the exchange to qualify. This rule will apply only if rules 1 and 2 do not apply to the specific situation.
Contact us for a free consultation with a TIC advisor regarding all upcoming 1031 tenants in common exchange opportunities.