1031 Reit Exchange Requirements
1031 Reit Exchange Requirement
To fully defer all capital gain taxes, the
1031 REIT exchange must meet four 1031 Reit Exchange Requirements:
Reinvest 100% of Proceeds: The value of the
1031 REIT real estate being purchased must be equal to or greater than the value of the
income real estate being sold.
Debt on replacement income real estate is equal to or greater than the debt on the relinquished income real estate.
Third, each real estate investor must use a Qualified Intermediary (QI) to oversee the transaction. A QI is a qualified individual that prepares the paperwork, holds all proceeds from the transaction, and provides any technical advise on the exchange process.
Finally, all 1031 REIT exchanges require the exchange of like kind income real estate for other like kind property. A definition of such may be found in internal revenue code.
For more information on 1031 REIT exchanges or tenants in common exchanges, or to be put in contact with a licensed 1031 REIT REIT advisor, contact us today!