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.

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…

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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.