Service
Reverse Exchange Coordination
Coordinate reverse exchanges using Exchange Accommodation Titleholders.
What This Includes
Our Reverse Exchange Coordination service helps investors navigate reverse (parking) exchanges using Exchange Accommodation Titleholders (EATs). This service is designed for property owners who need to acquire replacement property before selling their relinquished property, requiring a qualified intermediary to hold title temporarily.
We coordinate with Qualified Intermediaries who serve as Exchange Accommodation Titleholders, qualified escrow companies, and all parties involved in the reverse exchange structure. Reverse exchanges are complex transactions that require careful coordination and strict compliance with IRS Revenue Procedure 2000-37. The EAT acquires and holds the replacement property (or relinquished property) until the other leg of the exchange can be completed, typically within 180 days.
Our coordination process includes EAT selection, exchange documentation, timeline management for both the parking period and subsequent exchange, and compliance monitoring. We help Albuquerque, NM investors understand that reverse exchanges involve additional costs and complexity compared to forward exchanges, but provide flexibility when timing requires acquiring replacement property first. Our team ensures all parties understand their roles and that the exchange structure complies with IRS requirements.
What We Deliver
- Exchange Accommodation Titleholder (EAT) selection and coordination
- Reverse exchange structure planning and documentation
- Coordination with Qualified Intermediaries and qualified escrow companies
- Timeline management for parking period and exchange completion
- Compliance monitoring per IRS Revenue Procedure 2000-37
- Coordination with lenders, title companies, and all parties
- Cost analysis and fee transparency
- Ongoing communication and problem-solving throughout the process
Common Situations
FAQs about Reverse Exchange Coordination
What is a reverse exchange?
A reverse exchange allows Albuquerque, NM investors to acquire replacement property before selling the relinquished property, which is the opposite of a standard forward exchange. An Exchange Accommodation Titleholder (EAT) holds title to one of the properties temporarily while the other leg of the exchange is completed. Reverse exchanges are complex and must comply with IRS Revenue Procedure 2000-37. We help Albuquerque, NM investors understand this structure and coordinate all parties involved.
What identification rules apply in reverse exchanges?
Reverse exchanges for Albuquerque, NM investors still require compliance with identification rules, but the timing differs because the replacement property is acquired first. The identification of the relinquished property typically occurs when it's sold to complete the exchange. We help Albuquerque, NM investors understand how identification rules apply in reverse exchange structures and ensure proper compliance throughout the process.
What happens if I receive boot in a reverse exchange?
If Albuquerque, NM investors receive boot (cash or non-like-kind property) in a reverse exchange, that boot amount is taxable, just like in a forward exchange. Boot can occur from property value differences, debt relief, or cash received. We help Albuquerque, NM investors structure reverse exchanges to minimize boot and coordinate with tax advisors to understand the tax implications. Proper planning helps reduce boot exposure for Albuquerque, NM investors.
How long can a property be parked in a reverse exchange?
The parking period for reverse exchanges involving Albuquerque, NM investors is typically limited to 180 days, though the structure can be more complex. The Exchange Accommodation Titleholder must complete the exchange within the allowed timeframe. We help Albuquerque, NM investors understand these timing requirements and coordinate with EATs to ensure compliance. Proper timeline management is critical for Albuquerque, NM investors in reverse exchanges.
What are the costs of a reverse exchange?
Reverse exchanges for Albuquerque, NM investors involve additional costs compared to forward exchanges, including EAT fees, holding costs, and potentially higher intermediary fees. These costs vary based on the exchange structure and property values. We help Albuquerque, NM investors understand these costs upfront and coordinate with EATs and intermediaries to ensure transparent fee structures.
Can I do a reverse exchange if I've already identified replacement properties?
Yes, Albuquerque, NM investors can structure reverse exchanges even if they've already identified replacement properties in a forward exchange context. The reverse exchange structure provides flexibility when timing requires acquiring replacement property before selling relinquished property. We help Albuquerque, NM investors evaluate whether a reverse exchange structure makes sense for their situation and coordinate accordingly.
Compliance and Limits
Educational content only. Not tax, legal, or investment advice. A 1031 exchange defers income tax on qualifying real property and does not remove transfer or documentary taxes. Reverse exchanges are complex and require careful compliance with IRS Revenue Procedure 2000-37. Consult with qualified tax and legal advisors before making exchange decisions.
Next Step
Discuss Reverse Exchange Coordination
Coordinate reverse exchange coordination with specialists who understand Albuquerque, NM deadlines and national inventory.