- 1031 Exchanges
- Tenants-In-Common
- Exchange Details & Requirements
- Real Estate Professional
Dual Registration Program - Tax Professionals, Legal Advisors & Northland Securities1031
- About Us
- The Tax Deferred Exchange
- How to Initiate an Exchange
- 1031 Exchange Requirements
- Do's & Don'ts of 1031 Exchange Planning
- Can Your Tax Professional or Legal Advisor Be Your Qualified Intermediary?
- Exchange Terminology
- Like-Kind Property
- 1031 Qualified Property
- Delayed Exchange Deadlines
- Tenant-In-Common Interests
- Master Lease-Tenants-In-Common
- Non-Tax Reasons to Exchange
- Role & Selection of a Qualified Intermediary
- Role of a Tax Professional or
Legal Advisors - Disqualified Parties
- Tenants-in-Common Research &
Due Diligence Reports - Exchange Language
1031 Exchange Requirements
Requirement One
Exchange proceeds from relinquished or sold properties must be exchanged into purchased or replacement properties.
Requirement Two
Both equity and debt in the replacement property must be greater than or equal to equity and debt in the relinquished property. (Consult your tax advisor regarding cash contribution to reduce debt on replacement properties).
Requirement Three
Exchanger may not realize actual or constructive receipt of any sale proceeds until after completion of the exchange. A Qualified Intermediary is a professional exchange facilitator who escrows all sales proceeds and executes documents under “Safe Harbor” provisions.
Requirement Four
Relinquished and Replacement property must be “Like-Kind” property held for investment or for productive use in trade or business. The term “Like-Kind” refers to the nature or character of the property, not to its grade or quality. Personal property exchange rules regarding “Like-Kind” should be reviewed with a Qualified Intermediary and legal advisor.
For additional information regarding 1031 Exchange Requirements, contact Northland Securities1031 and consult with your tax professional, legal advisor and qualified intermediary.