Square Feet
Determined by multiplying the length by the width of a space. If a unit is 50 feet long by 40 feet wide, the amount of square feet is 50×40 = 2,000 square feet.
Safe Harbor
In a 1031 exchange, the intermediary temporarily holds the relinquished or replacement property, creating a ‘safe harbor’ to comply with the rules of the 1031 exchange.
Starker Exchange
Another term for a 1031 tax deferred exchange.
Sponsor (Investment Sponsor)
In a TIC or DST investment property, the sponsor is the entity that has created the DST or TIC ownership and solicited investors. Learn more regarding The Importance of a Reputable Property investment Sponsor.
Self-Directed IRA
A Self-Directed IRA is a type of traditional or Roth IRA that allows you to save for retirement on a tax-advantaged basis and has the same eligibility and contribution rules. While regular IRAs typically house only stocks, bonds, mutual funds…
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.