Simultaneous Exchanges
There is no requirement to do an exchange simultaneously, but it can be done. The greatest difficulty is scheduling all parties (agents, buyers, sellers, attorneys and closing agents) at the same time. When 2 parties are attempting a “Direct or Simultaneous Exchange” each must receive the others property. Often one of the parties will not want what the other party is exchanging, so a third party must be involved to purchase the unwanted exchange property. This can be quite cumbersome.
Delayed Exchanges
A Delayed exchange is a forward exchange where the relinquished property is sold and an identification of replacement property(s) is made on or before the 45th day following. The taxpayer is allowed a total of 180 days to close on the replacement property(s).
Reverse Exchanges
These types of exchanges are primarily used when a taxpayer must close on the replacement property prior to the sale of any relinquished property (s). Either the relinquished or replacement property must be parked with a Qualified Exchange Accommodation Title holder (QEAT) until such time a buyer can be found.
Construction Exchanges
Construction Exchanges are set up almost identical to Reverse exchanges, but with the intent to make improvements and not for just holding purposes. All improvements should be made onto new purchases and not property already owned by the taxpayer.
Personal Property Exchanges
Personal property may be exchanged for other “like-kind or like-class”, but can be more restrictive than real property.
Mixed Property Exchanges
Mixed Property Exchanges involving both Real Property and Personal Property. (A furnished rental for instance.)
We also offer speakers, training and workshops related to 1031 exchanges at real estate brokerage firms, title companies, accounting groups, and others. These workshops may be held in the offices of the inviting company or at other meeting facilities. These sessions are intended to familiarize the attendees with the exchanging process so we can all better represent our clients. It also gives our company more visibility in the sometimes puzzling world of tax deferred exchanges. We do not charge for initial consultations.
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