Property.
- Relinquished property must be held for (a) investment purposes or (b) productive use for a business or trade.
- Replacement property must be “like kind” to the relinquished property, including a Delaware Statutory Trust.
Timeline.
- Identify replacement(s) within 45 days of closing on relinquished property.
- Close on replacement property purchase within 180 days.
Identification.
- The “three-property” rule.
- The “200 percent” rule.
- The “95 percent” rule.
Acquisition Price.
- Equal to (or greater than) the net price of the relinquished property.
- Must invest all net proceeds for full deferral.
Qualified Intermediaries (“QIs”).
- Funds must be held by QI to avoid constructive receipt.
- Bridge Equities has relationships with QIs required to hold proceeds and complete the exchange.
Entity.
- Taxable entity taking possession of the replacement property must be the same as the entity which sold the relinquished property.