Hawaii 1031 Exchange Rules

Hawaii 1031 Exchange Rules

Hawaii 1031 Exchange rules require a hawaii real estate investors to identify potential replacement hawaii income real estate within 45 days of the close of escrow and acquire the replacement hawaii income real estate (or hawaii income real estate ) within 180 days of close of the relinquished hawaii income real estate. Furthermore, when choosing a replacement hawaii 1031 exchange hawaii income real estate for the hawaii 1031 exchange, the hawaii real estate investor must follow one of the following hawaii 1031 exchange rules:

The Three-Hawaii Income Real Estate Rule - Any three hawaii income real estate regardless of their market values may be identified by the exchanger as potential replacement hawaii income real estate for the like kind exchange, however no more than 3 hawaii income real estate may qualify.

The 200% Rule - Stipulates that the aggregate value of all replacement hawaii income real estate in the exchange must not exceed 200% of the value of the relinquished hawaii income real estate at the time of sale.

The 95% Exception - Finally, the 95% rule stipulates that the aggregate value of all like kind replacement hawaii income real estate must account for at least 95% of the value of the relinquished hawaii income real estate at the time of sale in order for the exchange to qualify. This rule applies only if rules 1 and 2 are invalid.

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