1031 Exchange Requirements

tification, like kind exchange rules, and how to designate property for a 1031 commercial exchange. When choosing a replacement property for the 1031 exchange the owner must follow one of the following three 1031 Exchange rules:

The “three-property” 1031 exchange rule: the owner may identify up to three properties, regardless of their value. The “200 percent” 1031 exchange rule: the owner may identify any number of 1031 replacement properties as long as the combined fair market value (FMV) of those properties does not exceed 200% of the FMV of all sold properties. The “95 percent” 1031 exchange rule: The owner may identify any number of 1031 exchange properties no matter the aggregate FMV, as long as 95% of the value of those identified 1031 exchange properties is acquired.

In all cases of a 1031 exchange, the owner must close on the identified replacement property(s) within 180 days from the sale date of the original property.

TIC Advisors 1031 Exchange Experts will give you the guidance you need to follow the 1031 Exchange Rules, meet the deadlines for a 1031 exchange, as well as any 1031 tax exchange new rules that are created.