What are the rules for like-kind exchanges?
• Both properties must be held for use in a trade or business or for investment purposes. Property used primarily for personal use (primary residence or vacation homes) does not qualify for like-kind exchanges. • The Value of the replacement property must be equal or greater than the value of the relinquished property. • The equity in the replacement property must be equal to or greater than the equity in the relinquished property. • The debt on the replacement property must be greater than the debt on the relinquished property. • All of the net proceeds from the sale of the relinquished property must be used to acquire the replacement property. • Property that is owned outside of the United States cannot be exchanged with property inside the United States. What are the time restrictions on completing a Section 1031 exchange? You have forty-five (45) days after the date that the relinquished property is transferred to identify replacement properties. One hundred and eighty days (180) a
• Both properties must be held for use in a trade or business or for investment purposes. Property used primarily for personal use (primary residence or vacation homes) does not qualify for like-kind exchanges. • The Value of the replacement property must be equal or greater than the value of the relinquished property. • The equity in the replacement property must be equal to or greater than the equity in the relinquished property. • The debt on the replacement property must be greater than the debt on the relinquished property. • All of the net proceeds from the sale of the relinquished property must be used to acquire the replacement property. • Property that is owned outside of the United States cannot be exchanged with property inside the United States. What are the time restrictions on completing a Section 1031 exchange? You have forty-five (45) days after the date that the relinquished property is transferred to identify replacement properties. One hundred and eighty days (180) a
