1031 Reit Exchange Rules
1031 Reit Exchange Rules
1031 Identification Rules
All exchanges require that real estate investors identify up to three potential replacement
income real estate within 45 days of the close of escrow on the relinquished income real estate. Furthermore, acquisition of said identified
income real estate must occur within 180 days of close on the relinquished income real estate. All exchanges must comply with at least 1 of the 3 following rules:
Three-Income Real Estate Rule - allows the exchanger to identify up to, but no more than 3 potential replacement income real estate within the acquisition period.
The 200% Rule - Stipulates that the aggregate value of all replacement income real estate in the exchange must not exceed 200% of the value of the relinquished income real estate at the time of sale.
The 95% Exception - Finally, the 95% rule stipulates that the aggregate value of all like kind replacement income real estate must account for at least 95% of the value of the relinquished income real estate at the time of sale in order for the exchange to qualify. This rule applies only if rules 1 and 2 are invalid.
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