February 25th, 2008
On a 1031 Investment
In a 1031 investment , there has to be some kind of way to establish that the properties being exchanged are like properties. This means that they have to be more or less equivalent (up to 95% equivalency is the general rule, though there are other rules that may apply). What constitutes as equivalent and what does not can be the subject of quite a lot of debate. For example, livestock of different breeds and genders are not considered equivalent. Likewise, properties inside and outside the United States are not considered to be equivalent either, no matter how identical they might be. Finding the right attorney can be crucial in these exchanges.