1031 exchange rules and regulations

[Blake M Pursel]

I am trying to learn more about the regulations of a 1031 exchange. The way I understand it is that you must find a property to purchase that is of equal or more value. What I am unsure of, is does that have to be one property? 

If I sell a house for 200k, and I wanted to do a 1031 exchange, does it have to be one house for 200k or more? Or could I buy four 50k houses? These are only hypothetical numbers! 

Thanks!

[Dave Foster]

@Michael Plaks, The turkey does it every time!!!  And did you now Honey baked hams also does honey baked turkey???!!!  I just found a new reason to live!!

@Blake M Pursel, There's a bunch of nuanced and conditional rules to successfully completing a 1031.  But in general

1. It has to be investment property for investment property (number of properties doesn't matter either way.  Value does).

2. You've got to meet a couple of timing requirements

3. Title has to be held a certain way

4. You have to have a Qualified intermediary to do the 1031.  And the QI has to be in place prior to your sale closing.

5. If you want to defer all tax you must purchase at least as much as your net sale and use all of the proceeds in the purchases or purchases.

There you go - 10,000 pages of case law summed up in 5 bullets.  I'll reach out via pm to put some more resources in your hands