California 1031 Exchange Rules
California 1031 Exchange Rules
California 1031 Exchange rules require a california property owners to identify potential replacement
california rental properties within 45 days of the close of escrow and acquire the replacement
california rental property (or
california rental properties ) within 180 days of close of the relinquished california rental property. Furthermore, when choosing a replacement
california 1031 exchange
california rental property for the
california 1031 exchange, the
california property owner must follow one of the following
california 1031 exchange rules:
The Three-California Rental Property Rule - Any three california rental properties regardless of their market values may be identified by the exchanger as potential replacement california rental properties for the like kind exchange, however no more than 3 california rental properties may qualify.
The 200% Rule - Stipulates that the aggregate value of all replacement california rental properties in the exchange must not exceed 200% of the value of the relinquished california rental property at the time of sale.
The 95% Exception - Finally, the 95% rule stipulates that the aggregate value of all like kind replacement california rental properties must account for at least 95% of the value of the relinquished california rental property at the time of sale in order for the exchange to qualify. This rule applies only if rules 1 and 2 are invalid.
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