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Kentucky 1031 Exchange Rules


Kentucky 1031 Exchange Rules

1031 Identification Rules

Kentucky 1031 Exchange Rules require kentucky real estate investors to identify like kind kentucky investment real estate for replacement within 45 days of the close of escrow on the relinquished kentucky investment real estate. Furthermore, all replacement kentucky investment real estate must be acquired within 180 days of close on the relinquished kentucky investment real estate. All kentucky 1031 exchanges must comply with one of the follow three rules:

  • The Three-Kentucky Investment Real Estate Rule - This rule allows the exchanger to identify up to, but no more than 3 potential kentucky investment real estate as qualified replacement kentucky investment real estate within the allotted time frame.

  • The Two Hundred Percent Rule - Stipulates that, if three or more replacement kentucky investment real estate are used in the exchange, their aggregate value must not exceed 200% of the value of the kentucky investment real estate that is being relinquished.

  • The Ninety-five Percent Exception - Finally, if circumstances are such that rules 1 and 2 do not apply, the aggregate value of the like kind replacement kentucky investment real estate must account for at least 95% of the value of the relinquished kentucky investment real estate at the time of sale in order for the exchange to qualify.

    To find out more, contact us and we will put you in touch with a kentucky 1031 realtor in your area.