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1031 Exchange Rules
1.) The subject properties must qualify for a 1031 exchange and be of "like-kind."
2.) There must be an exchange of property, not a transfer of property exclusively for money.
3.) The required timeline for 1031 exchange must be strictly followed.
4.) Only properties that are considered held for investment or business use can be used in a 1031 exchanged.
5.) There is a time limit of 45 days from closing on the relinquished property to identify a replacement property.
6.) There is a time limit of 180 days on the entire exchange.
7.) You may identify up to three properties, without regard to the fair market value, to be used in the exchange.
8.) While you may identify more than three potential properties as a replacement, the total fair market value of your identified properties may not exceed 200 percent.
9.) Replacement property must be identified in writing.
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What is the Boot Test?