1. Net Selling Price - to avoid ALL of the capital gains on the sale of your relinquished property, you must spend (purchase replacement properties) an amount equal to your Net Selling Price. (NSP = Selling Price less Closing Costs). If your replacement properties is less than your NSP, you will have to pay taxes on the difference.

2. Qualified Properties - All real estate is interchangeable and must be used for business or investment purposes. Both property must have a deed. Sell a Deed and Purchase a new Deed

3. Qualified Intermediary (QI) - The tax regulation requires that you use a QI to facilitate your exchange. You will see your QI do 3 main things for you: Prepare the Ex- change Agreement, Escrow the Proceeds, and Coordinate the Exchange with the closing agents. The QI must be contacted to start the exchange before closing.

4. 45 Day Rule - You have 45 days from the date of the sale of the relinquished property to iden- tify 3 replacement properties. If you know what you want to buy when you close on the relin- quished property, you can complete the purchase the same day as the relinquished sale or as quick as the closing can occur. This purchase does not count towards your identified proper- ties if you want to buy more than one.

5. 180 Day Rule - You must close on all indentified replacement properties within 180 days of closing on the sale of your relinquished property.

Rental Properties - You can sell vacant land and purchase residential property, such as a house or condo. The investor could hold the rental for a one to two years and rent it out. After that year, he or she could move into the property, and convert the property into his or her primary home.

Owner Occupied Business Property - Business owners can expand company headquarters or factories by purchasing a large building to suit their needs

Multi-Family Properties - An investor could sell their existing shopping center in exchange for an apartment building. Multifamily properties can be very good investments especially in times of low interest rates.

Commercial Properties or Triple Net Leases - An investor could sell an existing residential rental building, and roll the proceeds into a Triple Net Lease (NNN) like a commercial property. The investor collects the net rental income after the monthly mortgage payment, with the tenant paying all of the operating expenses, property taxes, utilities, insurance premiums, repairs and maintenance.

Tenancy in Common (TIC) - Unrelated co-owners can own an undivided fee interest in a TIC property, such as retail centers, malls, office buildings and other large commercial buildings that have tenants.

Condo-Hotels - These investments are private units owned by individuals but rented out to guests. Many investors like this type of investment because they avoid all of the maintenance costs of a vacation home,but still have hotel amenities.

Oil and Gas - There are numerous oil and gas programs that are recognized as “like-kind” to all other 1031 exchange property.

Raw Land - Many investors purchase undeveloped land in the hopes of eventually building on it, whether for personal or business use.