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...
When a taxpayer intends to acquire multiple Replacement Properties, with some properties closing before the Relinquished Property sale and some properties closing after, both the Forward and Reverse Exchange structures can be combined to maximize the tax deferral. ...
The Safe Harbor Reverse Exchange
What is a Reverse Exchange?
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.
Delayed 1031 Exchange – Timelines, Deadlines and Identification
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.