We daily handle inquiries on the specifics of handing a 1031 Exchange in 59106. Taking advantage of this section of the tax code is easy if you follow the simple guidelines. The net market value and equity of the property sold must be equal to or greater in the replacement property to defer 100 percent of the tax due on the sale. Otherwise, the Exchanger will pay tax on the difference. Debt and equity in the replacement property must be equal to or greater than the debt and equity in the sold property, and additional equity in the replacement property can offset debt. However, additional debt does not offset equity. While there is no hold time requirement in the 1031 code, the IRS will look to determine whether the property was acquired immediately
