The Key Differences Between a 1033 Exchange and 1031 Exchange
[{"id": "esryxh1", "text": " The 1033 exchange gives investors anywhere from two to three years from the date of the eminent domain or other forced conversion to close on replacement, like-kind real estate to complete the exchange.", "replies": [{"id": "ess8h1f", "text": "But a 1033 is only for forced conversions right?\n\n\u201cIn 1031, exchange of property is held for productive use in a trade or business or for investment. But in 1033, exchange of property is compulsorily or involuntarily converted as a result of eminent domain, destruction or theft. Equity in the replacement property in a 1031 exchange must be equal to or greater than the net equity of the relinquished property. Whereas, in a 1033 exchange, cost of the replacement property must be equal to or greater than the net proceeds received.\u201d", "replies": [{"id": "et8ryug", "text": "yes I  agree with you  . \n\nInvoluntary conversions are most often the result of a partial or complete property destruction (typically covered by an insurance payout), a condemnation, or a seizure of the property via eminent domain. Under the U.S. Constitution, the condemning governmental agency is required to compensate the property owner for any loss they suffer due to a governmental seizure of their property.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]