Category: 1031 Exchange General

Since 1921, the rules for qualifying and completing Accruit can help you put the pieces together for a successful 1031 exchange. 
For the taxable gain to be deferred, specific vital requirements must be satisfied:

Properties must be exchanged, rather than sold and then purchased
There must be no constructive or actual receipt of proceeds received by the taxpayer from the transfer of the relinquished property pursuant to the relinquished property contract
Properties must be “Like-Kind” 
Properties must be held for business or investment purposes
Exchange must be equal or up in value
The exchange must follow time limit and identification requirements:  A taxpayer must acquire or identify the target replacement property within 45 days after the transfer of the relinquished property. Properties received (purchased) within the 45-day designation period are deemed to be identified. The replacement property must be designated in a written document, unambiguously described, signed by the taxpayer, and received by the qualified intermediary on or before the 45th day. If the taxpayer identifies replacement property within the designated period, the exchange period end date may be extended up to 180 days from the transfer of the first relinquished property. This provides the taxpayer with additional time to complete the exchange. However, it might be necessary for the taxpayer to file a tax-filing extension to utilize the full 180 days.

Property Identification
In a typical forward exchange, the taxpayer will hire a

Since 1921, the rules for qualifying and completing Accruit can help you put the pieces together for a successful 1031 exchange. 
For the taxable gain to be deferred, specific vital requirements must be satisfied:

Properties must be exchanged, rather than sold and then purchased
There must be no constructive or actual receipt of proceeds received by the taxpayer from the transfer of the relinquished property pursuant to the relinquished property contract
Properties must be “Like-Kind” 
Properties must be held for business or investment purposes
Exchange must be equal or up in value
The exchange must follow time limit and identification requirements:  A taxpayer must acquire or identify the target replacement property within 45 days after the transfer of the relinquished property. Properties received (purchased) within the 45-day designation period are deemed to be identified. The replacement property must be designated in a written document, unambiguously described, signed by the taxpayer, and received by the qualified intermediary on or before the 45th day. If the taxpayer identifies replacement property within the designated period, the exchange period end date may be extended up to 180 days from the transfer of the first relinquished property. This provides the taxpayer with additional time to complete the exchange. However, it might be necessary for the taxpayer to file a tax-filing extension to utilize the full 180 days.

Property Identification
In a typical forward exchange, the taxpayer will hire a

Since 1921, the rules for qualifying and completing Accruit can help you put the pieces together for a successful 1031 exchange. 
For the taxable gain to be deferred, specific vital requirements must be satisfied:

Properties must be exchanged, rather than sold and then purchased
There must be no constructive or actual receipt of proceeds received by the taxpayer from the transfer of the relinquished property pursuant to the relinquished property contract
Properties must be “Like-Kind” 
Properties must be held for business or investment purposes
Exchange must be equal or up in value
The exchange must follow time limit and identification requirements:  A taxpayer must acquire or identify the target replacement property within 45 days after the transfer of the relinquished property. Properties received (purchased) within the 45-day designation period are deemed to be identified. The replacement property must be designated in a written document, unambiguously described, signed by the taxpayer, and received by the qualified intermediary on or before the 45th day. If the taxpayer identifies replacement property within the designated period, the exchange period end date may be extended up to 180 days from the transfer of the first relinquished property. This provides the taxpayer with additional time to complete the exchange. However, it might be necessary for the taxpayer to file a tax-filing extension to utilize the full 180 days.

Property Identification
In a typical forward exchange, the taxpayer will hire a

Since 1921, the rules for qualifying and completing Accruit can help you put the pieces together for a successful 1031 exchange. 
For the taxable gain to be deferred, specific vital requirements must be satisfied:

Properties must be exchanged, rather than sold and then purchased
There must be no constructive or actual receipt of proceeds received by the taxpayer from the transfer of the relinquished property pursuant to the relinquished property contract
Properties must be “Like-Kind” 
Properties must be held for business or investment purposes
Exchange must be equal or up in value
The exchange must follow time limit and identification requirements:  A taxpayer must acquire or identify the target replacement property within 45 days after the transfer of the relinquished property. Properties received (purchased) within the 45-day designation period are deemed to be identified. The replacement property must be designated in a written document, unambiguously described, signed by the taxpayer, and received by the qualified intermediary on or before the 45th day. If the taxpayer identifies replacement property within the designated period, the exchange period end date may be extended up to 180 days from the transfer of the first relinquished property. This provides the taxpayer with additional time to complete the exchange. However, it might be necessary for the taxpayer to file a tax-filing extension to utilize the full 180 days.

Property Identification
In a typical forward exchange, the taxpayer will hire a

Since 1921, the rules for qualifying and completing “Like-Kind” 
Must Follow Exchange Time Limit & Identification Requirement
Properties Must Be Held for Business or Investment Purposes
Exchange Must Be Equal or Up in Value:

To potentially defer all of the taxable gain, a property owner must first reinvest all of the equity in the relinquished property into the replacement property. Second, the purchase price of the property acquired must equal or exceed the sale price of the relinquished property.  Typically, this requires debt on the new property to equal or exceed the debt that is paid off on the relinquished property.

Identification Rules: The 3-Property Rule
The 3-property rule states that the replacement property identification can be made for up to three properties, meaning that an exchanger may identify more than one alternate property to be received in an exchange. The taxpayer can identify and purchase up to three replacement properties after relinquishing their initial property to the qualified intermediary, like Accruit. The amount totaled at the end of the identification is not relevant to the requirements of 1031 exchange rules in Florida or Kentucky? It is strongly recommended that you discuss your exchange with your tax and legal advisors along with a qualified intermediary. Accruit’s leadership team has over 200 years of combined experience working with taxpayers and their advisors in structuring successful 1031 exchanges.
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