New Jersey 1031 Exchange Requirements
New Jersey 1031 Exchange RequirementThere are four distinct requirements applicable to all new jersey 1031 exchanges :
In order to qualify as a new jersey 1031 exchange, 100% of the monies earned through the sale of any new jersey income real estate must be reinvested in the replacement new jersey income real estate.
Also, the amount of equity held in any like kind new jersey income real estate for reinvestment must be greater than or equal to that of the relinquished new jersey income real estate.
Third New Jersey 1031 Exchange Requirement: The new jersey real estate investor must use a Qualified intermediary ( new jersey 1031 exchange facilitator or new jersey 1031 exchange accommodator) to hold the funds from the first sale until purchase of the new new jersey income real estate is closed. The Qualified Intermediary (QI) acts as the middle-man in the new jersey 1031 exchange, providing paperwork, oversight, escrow services, and expertise necessary to ensure that the transaction legally qualifies as a new jersey 1031 exchange.
Fourth New Jersey 1031 Exchange Requirement: IRS rules require the exchange of like-kind new jersey income real estate. This does not mean that new jersey 1031 exchange new jersey income real estate must be of the exact nature as the relinquished new jersey 1031 exchange new jersey income real estate. Any real new jersey income real estate held for investment or real new jersey income real estate used in a trade or business can be exchanged in a new jersey 1031 exchange for any other real new jersey income real estate held for investment or used in a trade or business.
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