Types of Exchanges

Delayed Exchanges

Also known as a “Starker exchange” after the landmark case, a delayed exchange is an exchange that includes the sale of a relinquished property followed by the acquisition of replacement property some time with in the following 180 days. For complete rules, view 1031 Exchanges Made EasyLearn more

Simultaneous Exchanges

An exchange where the sale of the relinquished property and acquisition of the replacement property occurs at the same time. A Qualified Intermediary is required and all of the same rules must be followed as in a delayed exchange. For complete rules, view 1031 Exchanges Made Easy

Reverse Exchanges

A reverse exchange is a strategy that allows you to preserve your ability to take advantage of a 1031 exchange when, for whatever reason, you must take title to the replacement property before conveying title of the relinquished property to a buyer.  Learn More

Improvement Exchanges

When structured properly, an improvement or construction exchange will allow you to use some of the exchange proceeds to make improvements to replacement property and increase its fair market value. The key is that the improvements must be completed before you take title to the property but there a number of ways to successfully complete an improvement exchange.  Learn More

Vacation Home Exchanges

Until just a few years ago, there was little guidance to support the exchange of a vacation home. Revenue Procedure 2008-16 provided a “safe-harbor” enabling the successful exchange of vacation homes if you follow all of the rules. While it takes planning, a vacation home exchange can be very beneficial.  Learn More

Mixed Use Property Exchanges

Properties involving mixed uses (combining personal and business use) can be 1031 exchanged. The portion of the property used for business use can qualify for tax deferral treatment under Section 1031.   Learn More

Two-Party Swap Transactions

A two-party exchange includes the actual swap of property between two parties. Typically, a swap involves property of the same or similar price. While there is no need to use a Qualified Intermediary (QI) for a swap, many taxpayers prefer to structure the transaction within the protection of the safe-harbor provided when using a QI.  For more information on a Two-Party Swap or to discuss your transaction, contact a 1031 CORP. Exchange Officer