3 Steps for a 1031 Exchange
closing, all proceeds are directed to a St George Exchange Qualified Trust Account.
Qualified use Relinquished and replacement properties must be held for invetsment or productive use in a trade or business, not for resale or personal use.
Holding period There is no set time.
Like-Kind Exchange(LKE) Replacement property must be “like Kind” to relinquished property (i.e., real estate for real real estate)
Equal Value to defer all tax, all relinquished property sale proceeds must be used to purchase replacement property of equal or greater value.
Purchase Period Replacement property must be identified within 45 days and acquired within 180 days of sale of relinquished property.
Indentification Choose one of three options for identifying Replacement Property:
1) Up to three Properties of any value.
2) Any number of properties with a combined value less than 200% of Relinquished Property
3) Any number of Properties if you acquire 95% of the combined value of the property.
Qualified Intermediary Sales proceeds must be held by a Qualified Intermediary between the
sale of Relinquished Property and the purchase of Replacement Property.