What You Should Know About a 1031
In order to qualify for a 1031 tax exchange certain requirements must be met. Certain properties are excluded from a valid exchange, including: properties to be sold outright, stocks, bonds, certificates of trusts, and several other stipulations. The property to be sold also must be exchanged for another “like-kind” property. A “like-kind” property denotes any replacement property located in the United States that is of the same character of the to-be-sold property.
Keep in mind, as well, that to qualify the replacement property value, equity, and debt must be equal to or greater than the value of the property being sold.
