Home | 1.800.TIC.1031
TENANTINCOMMONNNN.COM

1031 Exchange Requirements


1031 Exchange Requirement

Four requirements for all 1031 exchanges and tenancy in common exchanges:

  • One hundred percent of the value of the relinquished investment property must be reinvested in the like kind investment property or investment properties at the time of the exchange.

  • The amount of equity held in the relinquished investment property must be less than the amount of equity held in the new, replacement investment property or investment properties.

  • Third, each investment property 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 exchanges require the exchange of like kind investment property for other like kind property. A definition of such may be found in internal revenue code.

    For more information on 1031 exchanges or tenancy in common exchanges, or to be put in contact with a licensed 1031 expert, contact us today!