Reverse Exchange Coordination
Exchange accommodation titleholder setup and reverse exchange execution
Reverse exchange coordination services help investors acquire replacement properties before selling their relinquished properties. This strategy requires careful coordination with a Qualified Intermediary and typically involves an Exchange Accommodation Titleholder to hold title to the replacement property. Our Columbus, OH team coordinates the complex documentation, timeline management, and compliance requirements for reverse exchanges. We work within IRS safe harbor guidelines, coordinate with qualified escrow providers, and ensure all deadlines are met. Reverse exchanges require strict adherence to timing requirements, with the relinquished property typically needing to be sold within 180 days of the replacement property acquisition.
What's Included
- Reverse exchange structure evaluation and planning
- Exchange Accommodation Titleholder coordination
- Qualified Intermediary coordination
- Documentation preparation and review
- Timeline management and deadline tracking
- Compliance verification with IRS safe harbor requirements
- Qualified escrow coordination
- Transaction coordination between all parties
Common Situations
Investor in Columbus, OH finds ideal replacement property but hasn't sold relinquished property yet
Portfolio owner needs to secure replacement property quickly to meet market timing requirements
Developer wants to acquire replacement property before completing sale of development property
Frequently Asked Questions
What is a reverse exchange and how does it work in Columbus, OH?
A reverse exchange in Columbus, OH occurs when you acquire the replacement property before selling the relinquished property. This requires an Exchange Accommodation Titleholder to hold title to the replacement property temporarily. The relinquished property must typically be sold within 180 days of the replacement property acquisition. We coordinate all aspects of reverse exchanges including EAT selection, documentation, and timeline management.
What identification rules apply to reverse exchanges in Columbus, OH?
Reverse exchanges in Columbus, OH follow the same identification rules as forward exchanges: the three-property rule, 200 percent rule, or 95 percent rule. However, since the replacement property is acquired first, identification typically occurs at the time of acquisition. We help structure reverse exchanges to comply with identification requirements while meeting acquisition timelines.
How is boot calculated in a reverse exchange in Columbus, OH?
Boot in a reverse exchange in Columbus, OH is calculated the same way as in a forward exchange: non-like-kind value received minus non-like-kind value given up. Common boot sources include cash received, debt relief exceeding replacement property debt, and personal property. We analyze transaction terms to identify potential boot exposure and help structure exchanges to minimize taxable boot.
What is an Exchange Accommodation Titleholder in Columbus, OH?
An Exchange Accommodation Titleholder in Columbus, OH is a qualified entity that temporarily holds title to the replacement property in a reverse exchange. The EAT must be independent from the taxpayer and Qualified Intermediary, and must comply with IRS safe harbor requirements. We coordinate with qualified EATs and ensure all documentation meets IRS guidelines.
What are the timing requirements for reverse exchanges in Columbus, OH?
Reverse exchanges in Columbus, OH typically require the relinquished property to be sold within 180 days of the replacement property acquisition, though specific timing depends on the exchange structure. We track all deadlines and coordinate with all parties to ensure timely completion of both property transactions.
Can I use a reverse exchange if I find a replacement property before selling in Columbus, OH?
Yes, reverse exchanges in Columbus, OH are designed for situations where you find a replacement property before selling the relinquished property. This strategy allows you to secure desirable replacement properties without waiting for the sale to close. We help evaluate whether a reverse exchange structure is appropriate for your situation.
Example Engagement
Example of the type of engagement we can handle
Client Situation:
Investor in Columbus, OH found an ideal replacement property but needs to complete the purchase before selling their relinquished property
Our Approach:
We structured a reverse exchange using an Exchange Accommodation Titleholder, coordinated with Qualified Intermediary and qualified escrow providers, prepared all documentation, and managed timelines to ensure the relinquished property sale was completed within required deadlines
Expected Outcome:
Client successfully acquired replacement property through reverse exchange structure, sold relinquished property within 180 days, and completed exchange with full tax deferral benefits
Educational content only. Not tax, legal, or investment advice. Not tax, legal, or investment advice. Consult a qualified intermediary and tax advisor before making decisions.
Ready to Start Your 1031 Exchange?
Get expert guidance for your exchange. Contact us today to discuss your situation.