Starker Exchange Requirements

1031 Exchange Properties
Largest selection of 1031-TIC Properties. Up-to-the-minute USA Database.
/landing/property

1031 Exchange Experts
Learn from the experts. Gain access to select TIC Properties Nationwide.
/landing/experts

1031 Exchange-REIT
Learn about 1031-REIT Exchanges. Exchange into a REIT 100% Tax Free!
/landing/REIT

1031 Oil and Gas
Increase Cash Flow, Decreased Risk, Inflation Hedge, Diversification.
/landing/oil_gas

1031 Exchange-TIC Info
Difficulty Finding NNN Property? Consider NNN Tenant in Common.
/landing/tic



Starker Exchange Requirement

Four requirements for all starker exchanges and tenancy in common exchanges:

  • One hundred percent of the value of the relinquished commercial real estate must be reinvested in the like kind commercial real estate or commercial real estate at the time of the exchange.

  • The amount of equity held in the relinquished commercial real estate must be less than the amount of equity held in the new, replacement commercial real estate or commercial real estate.

  • QI Requirement - According to 1031 real estate law, all exchanges must be processed with the help of a Qualified Intermediary.

  • Like-Kind commercial real estate, Defined - The IRS Code defines 'like kind commercial real estate as any commercial real estate held for productive use in a trade or business or held for investment purposes. According to said code, starker exchanges must be the exchange of one or more like kind commercial real estate for a separate like kind commercial real estate or commercial real estate.

    Due to restrictive timing rule of IRC 1031, taxpayers wishing to engage in a tax-free like kind exchange are under pressure to identify and acquire suitable commercial real estate. Accordingly, many real estate investors have failed to find suitable replacement commercial real estate. With this in mind, the tenancy in common structure was specifically designed to provide persons seeking to engage in a tax-free like kind exchange with a viable replacement commercial real estate solution.


    Popular tags

    		•
    Access to TIC properties Nationwide!
    FREE!

    Name
    (First Last)*
    Email *
    Phone *
    My role*
    Status*
    Equity*
    Tell us about your situation
      
    * Indicates that these fields are required and must be filled in.
    your privacy assured