Bothe the property sold (Relinquished Property) and the property purchased (Replacement Property) must be held for investment or productive use in a trade or a business. None of the properties Exchanged can be your personal residence.
Replacement Property(ies) must be identified within 45 days of the sale of the Relinquished Property and must be purchased within 180 days of the sale of the Relinquished Property
You can identify up to three Replacement Properties of any value during the Identification Period, or more subject to certain conditions.
The Replacement Property must be “Like-Kind” to the Relinquished Property. Any type of real estate property is like kind to other real estate property.
The party selling the Relinquished Property must be the same party purchasing the Replacement Property or a disregarded entity with respect to that party
You must purchase a property of equal or greater value to the property sold or pay tax on the difference.
You must use all of the cash proceeds from the sale of your Relinguished Property toward the purchase of Replacement Property or pay tax o the difference. If you offer Seller Financing on your Relinquished Property, You may be Subject to tax as the principal is repaid.
To qualify for sale harbor tax deferral, sale proceeds must be held by a Qualified Intermediary between the sale of the Relinquished Property and the purchase of the Replacement Property.