Rules you NEED to KNOW about 1031 exchanges.

1. Real Property Use - Both your OLD and NEW properties must qualify as investment or business use.
 (Nearly all types of Real Estate qualify)

2. 45 Day Identification period - You have 45 days from the closing of your sale to list the properties
 you may want to buy. There are no exceptions to this deadline.

3. 180 Day Exchange period - From the sale closing date, you only have 180 days to close on one or
 more of the properties from your 45 day list.

4. Qualified Intermediary - The IRS mandates that you use a QI to prepare the legal documents for your exchange. The QI also holds the money till you exchange is complete.

5. Proper Title Holding - You must purchase and take title to your new property exactly as you held title
 to your old property.

6. Reinvestment Requirement  - To defer all of your capital gain tax, you must buy a property equal or
 higher in value than the one you sold. You must reinvest all of the cash proceeds from your sale.