1031 Exchange Requirements

1031 Exchange Requirement

All 1031 exchanges, including TIC exchanges, must adhere to the following requirements:

  • The total money reinvested into the like kind commercial property must equal or be greater than the value of the relinquished commercial property. In other words, 100% of the assets from the sale of the first commercial property must be rolled into the second investment.

  • The amount of equity ( commercial property value minus loan amt. ) of the acquired commercial property must be equal to or greater than that of the commercial 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 commercial properties must be like kind. The IRS definition of Like-Kind is any commercial property held for productive use in a trade or business or held for investment purposes.

    The successful completion of a 1031 exchange into TIC ownership is best facilitated by a 1031 expert who specializes as a Replacement commercial property Specialties. Contact us today to complete your 1031 exchange.



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