Reverse Exchange
A reverse exchange is a method by which the replacement property is acquired before the relinquished property is transferred. Historically, all 1031 properties were transferred simultaneously. Then, in 1984, Congress amended the tax code to permit deferred exchanges whereby the Exchanger was allowed to acquire the replacement property within 180 days of disposing of the relinquished property. Finally, as of September 15, 2000, the IRS published Revenue Procedure 2000-37, which provides a safe harbor for reliably completing reverse 1031 exchanges.
ANi X31 Exchange Services provides you with expert service on reverse exchanges. Because of increased transaction costs and liabilities, reverse exchanges should be considered when it is not possible to structure a simultaneous or typical deferred exchange. Reverse exchanges are more complicated than deferred exchanges. They have more requirements and therefore require more careful planning and execution.
Please take the time to read the informational content and discuss your transaction with a knowledgeable tax adviser. Should you desire additional information, please contact one of our ANi X31 offices and experience ANi X31 Exchange Services for yourself. |
