What properties Qualify for a 1031 Exchange?
LIKE-KIND PROPERTY DEFINITION
"This property is considered to be property
held for investment, trade or business."
held for investment, trade or business."
HELPFUL IDENTIFICATION RULES
Several identification rules can be utilized to ensure that you are working with like kind properties. Below are some helpful identification rules, if you have any questions ask your Mutual-exchange, LLC advisor.
- 3 Property Rule - Up to three (3) properties can be identified without regard to their fair market value.
- 200% Rule - Any number of properties as long as their combined fair market value does not exceed 200% of the fair market value of all relinquished property.
- 95% Rule - Any number of properties regardless of their aggregate fair market value, provided 95% of the value of the identified properties are acquired.
- None Of The Above Rule - If you close your final identified and designated replacement property before the 45th day deadline; none of the above rules apply.
We suggest for additional information and criteria related to the Identification Rules you consult with your Mutual-exchange representative.