Exchange Types



Non-Safe Harbor Reverse Exchanges

A “reverse” exchange occurs when the taxpayer acquires the Replacement Property before transferring the Relinquished Property. A “pure” reverse exchange, where the taxpayer owns both the Relinquished and Replacement Properties at the same time, is not permitted. As a...

The Build to Suit Exchange

The build-to-suit exchange, also referred to as a construction or improvement exchange, gives the Exchanger the opportunity to use all or part of the exchange funds for construction, renovations or new improvements to the Replacement Property.

Exchanges with Intermediary

In a simultaneous exchange, the old Relinquished Property and the new Replacement Property are transferred concurrently.

Multiple Asset Exchanges

Some business or investment assets, such as a hotel or farm, consist of both real and personal property.

The Delayed Exchange – Deadlines and Identification Requirements

The most common exchange structure is the delayed “forward” exchange in which the Relinquished Property is sold, the proceeds (“Exchange Funds”) are delivered to the Qualified Intermediary, and are subsequently used to acquire Replacement Property from a third party seller.

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