Pennsylvania 1031 Exchange Rules

Pennsylvania 1031 Exchange Rules

When choosing a replacement pennsylvania 1031 exchange pennsylvania rental real estate for the pennsylvania 1031 exchange, the pennsylvania real estate investor must follow one of the following pennsylvania 1031 exchange rules:

The Three-Pennsylvania Rental Real Estate Rule - No more than three pennsylvania rental real estate regardless of their market values, may be chosen as potential replacement pennsylvania rental real estate within 45 days of the close of escrow on the relinquished pennsylvania rental real estate. Said pennsylvania rental real estate must be acquired within 180 days of the close of escrow on the relinquished pennsylvania rental real estate.

The Two Hundred Percent Rule - This rule dictates that, in the event that three or more like kind pennsylvania rental real estate are selected as replacement pennsylvania rental real estate, the aggregate market value of said pennsylvania rental real estate may not exceed 200% of the market value of relinquished pennsylvania rental real estate.

The Ninety-five Percent Exception In the even that rules 1 and 2 do not apply, the Ninety-Five Percent Exception takes precedence. This rule dictates that the aggregate market value of all replacement pennsylvania rental real estate must represent at least 95% of the value of the relinquished pennsylvania rental real estate in order for the exchange to still qualify.

Many exchangers choose tenancy in common exchanges because of the efficiency in closing---which is due, in large part, to pre-arranged financing available.