Understanding Real Estate

Tax-Deferred Exchanges

For you folks who like rules and formulas, this section is for you! For those of us that don't, we will keep it simple. So, here it goes... when you sell your property(s), the replacement property(s) must equal or be greater than the VALUE (sale price) and existing DEBT of the property(s) being sold (exchanged), and all of your EQUITY from the property you are selling (exchanging) must go into acquiring the replacement property(s).
The formula is: The replacement property(s) must be equal or greater in VALUE & DEBT than the property(s) being sold (exchanged).