1031 Tax Code Exchange Rules
1031 Tax Code Exchange Rules
When choosing a replacement
1031 tax code exchange
commercial commercial property for the
1031 tax code exchange, the
commercial property investor must follow one of the following
1031 tax code exchange rules:
The Three-Commercial Commercial Property Rule - No more than three commercial commercial properties regardless of their market values, may be chosen as potential replacement commercial commercial properties within 45 days of the close of escrow on the relinquished commercial commercial property. Said commercial commercial properties must be acquired within 180 days of the close of escrow on the relinquished commercial commercial property.
The Two Hundred Percent Rule - Stipulates that, if three or more replacement commercial commercial properties are used in the exchange, their aggregate value must not exceed 200% of the value of the commercial commercial property that is being relinquished.
The Ninety-five Percent Exception - Finally, if circumstances are such that rules 1 and 2 do not apply, the aggregate value of the like kind replacement commercial commercial properties must account for at least 95% of the value of the relinquished commercial commercial property at the time of sale in order for the exchange to qualify.
To find out more, contact us and we will put you in touch with a 1031 tax code realtor in your area.