IRS §1031 guidelines to Qualify Seller should have the contract specify that the sale may be structured as a 1031 exchange.Seller cannot receive or control the net sale proceeds – the proceeds must be deposited in a qualified escrow (Qualified Intermediary). Replacement property must be “like-kind” to the relinquished property, investment property for investment property only. Personal residences and vacation homes that are not utilized primarily as rentals do not qualify for a 1031 exchange. Property must be for productive use in a business or for an investmentThe replacement property must be equal or greater value than the relinquished property.The equity of the replacement property must be equal or greater than the equity of the relinquished property. Sign Up For Our Newsletter!