Starker 1031 Exchange Requirements
Starker 1031 Exchange Requirement
To fully defer all capital gain taxes, the
starker 1031 exchange must meet four Starker 1031 Exchange Requirements:
Reinvest 100% of Proceeds: The value of the starker 1031 property being purchased must be equal to or greater than the value of the
rental property being sold.
Debt on replacement rental property is equal to or greater than the debt on the relinquished rental property.
Third Starker 1031 Exchange Requirement: The third requirement of Section starker 1031 exchanges is that you must use a Qualified Intermediary (QI). The QI prepares the exchange documents, holds the cash proceeds from the sale, and should answer any questions you may have during the exchange.
Fourth Starker 1031 Exchange Requirement: Both relinquished and replacement rental property must be held for productive use in a trade or business or held for investment and rental property must be like-kind. Like-kind refers to the nature of the rental property. The IRS definition of Like-Kind is any rental property held for productive use in a trade or business or held for investment purposes.
In order to complete your next starker 1031 exchange or tenants in common exchange, contact us today. We can put you in contact with a specialized starker 1031 advisor at no cost to you.