Types of Exchanges:
Simultaneous Exchange
The relinquished
property and the replacement
property are transferred
concurrently.
Delayed Exchange
(Also referred to as Deferred or
Starker Exchanges)
This is the most
common exchange. The replacement
property is identified within 45
days and acquired by the end of the
exchange period.
Reverse Exchange
The replacement property is acquired
before disposing of the relinquished
property.
Build-To-Suit
(Construction) Exchange
The relinquished
property is sold in a delayed
exchange and then the replacement
property is acquired after it has
been improved with the exchange
funds from the relinquished
property.
Reverse Build-To-Suit
Exchange
The Exchangor is allowed to acquire
and improve or repair the
replacement property prior to
transferring the relinquished
property. |
Categories of Exchanges
Personal Property
Exchange
Personal property held for
investment or used in trade or
business can be exchanged only for
property that is similar in use or
in quality. Rules can be complex.
(cow ≠ bull, tractor
≠ bulldozer, AM Radio Frequency = FM
Radio Frequency).
Real Property
Exchange
All types of real
property are generally considered
like-kind to other types of real
property.
(vacant land = office
building).
Mixed Use Property
Exchange
When Exchangors are
seeking to exchange property having
both real and personal property
components, allocation must be made
to each category and relinquished
personal property must be matched up
with like-kind replacement personal
property.
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