TYPES OF EXCHANGES
Exchange QI, Inc. assists clients with the following types of 1031 exchanges
FORWARD EXCHANGE
A forward exchange is where a taxpayer (a person or an entity) first sells real property held for business or investment purposes and then identifies (within 45 days) and purchases (within 180 days) like-kind replacement property. The qualified intermediary holds the sales proceeds of the relinquished property in trust and applies such funds towards the acquisition of the replacement property.
REVERSE EXCHANGE
A reverse exchange is where a taxpayer (a person or entity) first acquires replacement real property to be held for business or investment purposes and then identifies (within 45 days) and sells (within 180 days) like-kind relinquished property. So as to comply with applicable rules, the qualified intermediary holds the replacement property in a single purpose LLC (an “Exchange Accommodation Titleholder”) on behalf of the taxpayer.
IMPROVEMENT EXCHANGE
An improvement exchange is where a taxpayer (a person or entity) through the qualified intermediary acquires real property held for business or investment purposes and then improves such property. So as to comply with applicable rules, the real property is held in a single purpose LLC (an “Exchange Accommodation Titleholder”) during the improvement period.
FORWARD EXCHANGE
A forward exchange is where a taxpayer (a person or an entity) first sells real property held for business or investment purposes and then identifies (within 45 days) and purchases (within 180 days) like-kind replacement property. The qualified intermediary holds the sales proceeds of the relinquished property in trust and applies such funds towards the acquisition of the replacement property.
REVERSE EXCHANGE
A reverse exchange is where a taxpayer (a person or entity) first acquires replacement real property to be held for business or investment purposes and then identifies (within 45 days) and sells (within 180 days) like-kind relinquished property. So as to comply with applicable rules, the qualified intermediary holds the replacement property in a single purpose LLC (an “Exchange Accommodation Titleholder”) on behalf of the taxpayer.
IMPROVEMENT EXCHANGE
An improvement exchange is where a taxpayer (a person or entity) through the qualified intermediary acquires real property held for business or investment purposes and then improves such property. So as to comply with applicable rules, the real property is held in a single purpose LLC (an “Exchange Accommodation Titleholder”) during the improvement period.