Deferring 100% of the Gain During a 1031 Exchange

A. Acquire a replacement property that is equal to or greater than the value of the

relinquished property

B. Reinvest all of the net equity from the relinquished property in the replacement

property and

C. Acquire debt on the replacement property that is equal to or greater than the debt

on the relinquished property Treas. Reg. §1.1031(d)-2

i. If the debt on the replacement property is less than the debt on the relinquished

property, then taxpayers may contribute additional cash to balance the exchange

EXETER 1031 EXCHANGE SERVICES, LLC

Steven W. Monk      

Vice President and Regional Manager