Highlights of Reverse Exchanges
• Reverse Exchanges must be completed in 180 days. The 180 days starts from date the Intermediary purchases the replacement property for the taxpayer.
• Within 45 days of the purchased parked property, an
identification form must be completed that identifies the
relinquished property that is to be sold.
• A new document called a “Qualified Exchange
Accommodation Agreement” must be completed by the Qualified
Intermediary and the taxpayer. Upon the sale of an investment
property, one can defer all capital gains tax by purchasing a
replacement property.