In a 1031 exchange transaction, the seller has 45 days from the close of escrow on his/her property (the relinquished property) to identify a replacement property(s). The replacement property(s) must be of equal or greater value in order for 100% tax-deferral to be recognized. The investor then has 180 days from the close of escrow of the relinquished property to acquire the replacement property(s).
EXAMPLE: Sale Price = $1,000,000 Equity = $500,000 Mortgage = $500,000 Replacement Property = $1,000,000 or greater
(at least $500k equity/at least $500k debt) The relinquished property or the property sold may be any property held for investment or business purposes. The replacement property(s) must be “like kind” real estate in order to qualify for the 1031 Exchange.
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CORPORATE PROFILE 
1031 Exchange Requirements
Apartment Building 
