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Section 1031 Exchange
Section 1031 of the Internal Revenue Code allows taxpayers to defer gains taxes by exchanging qualified, real or personal property (relinquished property) for qualified "like-kind" property (replacement property). Property involved in a 1031 tax deferred, exchange must be held for investment or for use in a trade or business.

45-Day Rule
An Exchanger has 45 calendar days to properly identify one or more replacement property with his or her Accommodator. The identification period starts the day after the relinquished property closes escrow, and is based on calendar days, including weekends and holidays. The Exchanger has until midnight of the 45th day to make a proper identification to the accommodator. In most cases, a fax will suffice (check with your Accommodator to make sure).

180-Day Rule
An Exchanger has 180 calendar days after the relinquished property closes escrow to complete an exchange transaction.

Accommodator
An Accommodator (or Qualified Intermediary) is a required party to a 1031 exchange. An Accommodator is a disinterested third party that facilitates the exchange for an Exchanger in accordance with 1031 exchange rules. The Accommodator holds the exchange funds until a replacement property is purchased, and is the recipient of replacement property identification.

Accredited Investor
An Accredited Investor is someone who is financially qualified to participate in a Regulation D private placement offering (such as a TIC offering). There are several ways to be meet the requirements to be considered an Accredited Investor (you only have to meet one of them). They include:

  • An individual with an annual income of $200,000 or more (past two years)
  • A household with an annual income of $300,000 or more (past two years)
  • A household net-worth of $1 million or more (inclusive of house and autos)
  • A trust or qualified plan with $5 million or more in assets

Appreciation
Appreciation is the increase in the value of a property versus its original purchase price. For tax purposes, appreciation includes both the increase in value as well as the amount of depreciation that has been taken against the property.

 
   
   
   
     
 


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 659 Abrego Street, Suite 6, Monterey, CA 93940, 831-375-6624
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The material contained in this website does not constitute an offer to buy or sell securities or real estate. Such an offer can only be made by a sponsor's private placement memorandum or prospectus, which fully describes the offering, including risks and expenses. Turner Financial Group, Inc. and Lighthouse Capital Corporation are not affiliated. (See Additional Disclosures)