Hawaii 1031 Exchange Requirements

Hawaii 1031 Exchange Requirement

There are four distinct requirements applicable to all hawaii 1031 exchanges :

In order to qualify as a hawaii 1031 exchange, 100% of the monies earned through the sale of any hawaii income real estate must be reinvested in the replacement hawaii income real estate.

Also, the amount of equity held in any like kind hawaii income real estate for reinvestment must be greater than or equal to that of the relinquished hawaii income real estate.

Third, each hawaii real estate investor must use a Qualified Intermediary (QI) to oversee the transaction. A QI is a qualified individual that prepares the paperwork, holds all proceeds from the transaction, and provides any technical advise on the exchange process.

Finally, all hawaii 1031 exchanges require the exchange of like kind hawaii income real estate for other like kind property. A definition of such may be found in internal revenue code.

For more information on hawaii 1031 exchanges or tenants in common exchanges, or to be put in contact with a licensed hawaii 1031 expert, contact us today!