95% Rule

The 95% rule also allows real estate investors to identify an unlimited number of replacement properties for the property being relinquished. But unlike the 200% rule that puts a limit on the total value of the identified replacement properties, the…

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200% Rule

The 200% Rule allows the investor to identify an unlimited number of replacement properties, provided the combined total value of these properties does not exceed 200% of the value of the property being relinquished.

1031 Exchange Timeline

A 1031 Exchange transaction must be fully completed within 180 days of the initial investment property being sold.  First the investor desiring a 1031 Exchange must identify potential replacement properties within the first 45 days with the exchange being completed…

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1031 Exchange Property

Also known as a 1031 replacement property, a 1031 Exchange Property refers to the property that is replacing the property that has been sold by an investor.

1031 Exchange (IRC 1031)

The term 1031 Exchange refers to a transaction, stipulated in the Internal Revenue Code 1031 that, when specific rules and time constraints are followed, allows an investment property to be sold and and the proceeds be reinvested in a new…

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1031 Exchange Rules

  • Property must be like-kind real estate
  • Real estate must be used for investment or business, and not be considered stock in trade or personal property
  • Property replaced must be of equal or greater value to the property being relinquished
  • Boot must not be received by the seller
  • Title of the relinquished property and the replacement property must be in the same taxpayer name
  • Replacement property must be identified within 45 days of closing on the sale of the relinquished property
  • Replacement property must be purchased within 180 days of closing on the sale of the relinquished property.