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REVERSE EXCHANGE

A reverse exchange occurs when the replacement property is acquired prior to selling the relinquished property.  The IRS has offered a safe harbor for reverse exchanges, as outlined in Revenue Procedure 2000-37, effective September 15, 2000.  The exchanger “parks” either their old or new property with the Exchange Accommodation Title Holder (EAT) until they are ready to complete their exchange.

If you are contemplating a reverse exchange please feel free to contact us at 800-733-1031 for further information.

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