Category Archives: FAQ

Again, a delayed or deferred exchange is defined as those transactions in which a taxpayer transfers the relinquished property in exchange pursuant to the 45-day/180 day provisions enacted by Congress in 1984. Reverse Exchanges are when an individual wish to … Continue reading →

"Construction" or improvement exchanges are for replacement property to be built and are formally sanctioned by the new IRS Code. They consist of transactions in which the replacement property is built-to-suit, or in the case of already improved property, is … Continue reading →

Yes, in a series of letter rulings, the IRS has given reasonably clear guidance on this type of transaction. While somewhat complicated, A Troika Consortium, Inc. has arranged with outside legal counsel to structure and document these types of transactions.

All replacement property to be acquired in the exchange must be "unambiguously described" by legal description, assessors parcel number or tax map key or equivalent number, or address, distinguishable name, etc., and made in a written document executed by the … Continue reading →

One of the following three rules must be followed when identifying replacement properties: Three properties of any value may be identified. This rule is known as the "Three Property Rule." You may then acquire one, two or three properties identified. … Continue reading →

Only if you have relied on the 95% Rule. In other words, if you have identified more than three properties which have aggregate fair market values more than 200% of the fair market value of the relinquished property. In such … Continue reading →

The Revenue Reconciliation Act of the 1989 Legislative session effected a two year related party restriction wherein property conveyed to a related party is now subject to a two-year holding period. If either exchanger or the related party disposes of … Continue reading →

Constructive Receipt occurs in an exchange when the taxpayer has the unrestricted right to access cash or boot, whether or not such right is exercised, and regardless of whether there is actual or physical receipt of the cash or boot. … Continue reading →

Yes. You can exchange one relinquished property into one or more replacement properties, and visa versa.

Yes, for a fully tax-deferred exchange. If you wish to defer all taxes otherwise due upon sale, the aggregate fair market value of all replacement property received must be equal to or greater than the aggregate fair market value of … Continue reading →