1031 Reverse Exchange

Cincinnati, Ohio, Tax Lawyers: 1031 Reverse Exchange

A reverse exchange is a tax-deferred transaction where the property owner buys the replacement property first and then sells the relinquished property. The identification of the property or properties to be relinquished must take place within 45 days of buying the replacement property, and the sale must take place within 180 days.

At Strategic Property Exchanges, LLC in Cincinnati, our lawyers understand the rules that apply to 1031 reverse exchanges. We provide a high level of individualized and personalized service. Our federal tax opinion guarantees that your 1031 reverse exchange is in full compliance with applicable federal tax laws.

Why would investors choose to do a reverse exchange?

To qualify for tax benefits, 1031 transactions must be completed within 180 days. However, the due diligence involved in purchasing commercial property can take a year or longer. Being forced to buy new property within 180 days of selling the relinquished property can put taxpayers in a straightjacket. The reverse exchange gives taxpayers all the time they need to identify and acquire replacement property. The 180-day limit still applies, but in a reverse exchange the clock starts ticking after you buy the replacement property.

In order to complete a successful 1031 exchange, an intermediary must purchase the property and hold it until you sell the relinquished property. Strategic Property Exchanges, LLC will act as your intermediary in a reverse exchange. You will be able to manage the replacement property while it is held by the intermediary.

Improvement exchanges

An improvement exchange is a transaction where the property owner uses exchange proceeds to improve the replacement property. The improvement exchange can either be accomplished in a reverse or parking exchange.

For more information

To schedule a consultation about a 1031 reverse exchange, please call 513-412-3483 or fill out the contact form on this Web site. From our offices in Cincinnati, Ohio, our attorneys represent property owners throughout Ohio.