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Maryland 1031 Exchange Rules


Maryland 1031 Exchange Rules

In order to comply with IRS internal revenue code, maryland property investors must identify potential replacement maryland income properties withing 45 days of the close of escrow and acquire said maryland income property (or maryland income properties withing 180 days of the closing of the relinquished maryland income property. Furthermore, when entering into a maryland 1031 exchange, maryland property investors must comply with one of the following rules:

  • The Three-Maryland Income Property Rule - Dictates that the seller must identify up to a total of three potential replacement maryland income properties within the 180 day Acquisition Period.

  • The 200% Rule - Stipulates that the aggregate value of all replacement maryland income properties in the exchange must not exceed 200% of the value of the relinquished maryland income property at the time of sale.

  • The 95% Exception - Finally, the 95% rule stipulates that the aggregate value of all like kind replacement maryland income properties must account for at least 95% of the value of the relinquished maryland income property at the time of sale in order for the exchange to qualify. This rule applies only if rules 1 and 2 are invalid.

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