REVERSE 1031 EXCHANGE: The IRS code also provides for a "reverse exchange." As a matter of fact, Mary & I just completed a reverse 1031 exchange. The basics are the same as a regular 1031 except in a reverse the individual acquires the new property up front. From the day of closing you have 45 days to announce the property or properties that will be relinquished (sold) and 180 days to complete the sale to remain within the "safe harbour" period. The primary difference in a "regular" and "reverse" 1031 exchange is in a regular exchange you MUST complete the exchange within the 180 day safe harbour period. A reverse exchange still has the 180 day safe harbour period but experts tell me, to the best of their knowledge, the IRS has never looked at a reverse exchange that went beyond the 180 day period.
This should not be construed as providing tax or legal advice. If tax or legal advice is needed, please consult your attorney or accountant. Or, we can put you in touch with a "Qualified Intermediary" in Durango.
http://HomesInDurango.com
http://DurangoRealEstate.biz
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