Reverse 1031 Exchanges
Buy your replacement property first. We'll help coordinate the exchange.
Sometimes the right investment opportunity comes along before you've sold your existing property. A reverse 1031 exchange allows an investor to acquire replacement property before selling the property they intend to relinquish, potentially deferring capital gains taxes under Section 1031 of the Internal Revenue Code.
Reverse exchanges are more complicated than standard forward exchanges and require advance planning and careful coordination. Accountable 1031 brings experience and personal attention to help guide you through the process.
How a Reverse 1031 Exchange Works
1. Plan Before You Purchase
A reverse exchange generally needs to be structured before acquiring the replacement property. Accountable 1031 works with you and the other professionals involved to plan the transaction.
2. Acquire the Replacement Property
The replacement property is acquired through an appropriate exchange structure, often involving an Exchange Accommodation Titleholder (EAT).
3. Sell Your Existing Property
You then have a defined period to sell your relinquished property, subject to the applicable exchange requirements and deadlines.
4. Complete the Exchange
Once the relinquished property is sold and the required steps are completed, the exchange is finalized according to the agreed structure.
Why Choose Accountable 1031?
Reverse exchanges require more planning, coordination, and attention to detail than a typical delayed exchange.
Our team understands the challenges involved and works closely with clients and their professional advisors to help keep complicated transactions organized. We emphasize responsive communication, personal service, and careful coordination from beginning to end.
Considering a Reverse Exchange?
The earlier you involve your Qualified Intermediary, the more options you may have when planning your transaction.
Contact Accountable 1031 before purchasing your replacement property to discuss your situation and how we can help.