Net selling price (NSP)
To avoid capital gains tax on the sale of your relinquished property, you must spend an amount equal or greater than your net selling price. (NSP equals selling price minus title fees and realtor commissions)
What properties qualify
All real estate can be exchanged as long as it is held for investment or for productive use in a trade or business. House=Duplex=Land=Condo=Business Land=30-Year Lease=Deed for Deed
You must use a qualified intermediary (QI)
The regulations require that you use a QI to facilitate your exchange. Your QI does three main things: prepares the exchange agreement, escrows the proceeds after closing of the relinquished property, and coordinates the exchange with all closing agents.
You have 45 calendar days from closing on the sale of the relinquished property to identify up to three replacement properties. If you wish to identify more than three replacement properties, restrictions will apply.