delayed

Exchanger sells real property that is held for productive use in a trade or business or an investment property (relinquished property) to a non-related third party and purchases another property (replacement property) that will be held as like-kind. The purchase of the replacement property occurs within 180 days from the sale of the relinquished property.

CONCURRENT OR SIMULTANEOUS

The same parameters of the deferred exchange except the sale of the relinquished property and purchase of replacement property occur on the same day, meaning the net proceeds from the sale fold directly into the purchase transaction.

reverse (parking the replacement property)

When exchanger is ready to purchase replacement property before they have relinquished their sale property, then this type of exchange transaction is used. Because exchanger cannot own both relinquished and replacement properties at the same time, in this transaction the exchanger has an Exchange Accommodator Titleholder (EAT) take title to replacement property. All funds and financing are provided by exchanger. Once exchanger is ready to sell relinquished property, the proceeds from the sale are used to purchase replacement property from EAT.

Feel free to contact our office for a more specific quote based on your exchange.

reverse (Parking the Relinquished Property)

Similar to the Reverse Exchange Last Format, exchanger is ready to purchase replacement property before selling relinquished property. However, in this format the exchanger sells relinquished property to EAT. The proceeds from the sale are provided by exchanger and transferred to replacement property purchase. Once exchanger has obtained buyer for relinquished property, title is transferred from EAT to buyer. The caveat of this format is that exchanger is technically guesstimating the value and net proceeds from the sale of the relinquished property to ultimate buyer. If replacement property value is close then there is a possibility of exchanger receiving cash (boot) from sale transaction. The benefit of this format is that exchanger may obtain financing on replacement property directly in their name.

Feel free to contact our office for a more specific quote based on your exchange.

improvement or construction

Exchanger has found a replacement property that is lesser in value than relinquished property but needs significant improvements that could increase its value well above the relinquished property’s once completed. In this type of exchange, exchanger has EAT purchase replacement property. During this time, exchanger may manage said property and use funds to make improvements. Relinquished property may be sold at any time but all improvements and transfer of ownership of EAT to exchanger on replacement property must be completed within 180 days.

Feel free to contact our office for a more specific quote based on your exchange.