Safe Harbors and Careful Planning Make Deferred Exchanges a Valuable Tool
Bradley T. Borden
Brooklyn Law School
Journal Taxation of Investments, Vol. 25, p. 43, 2008
This Article describes the section 1031 deferred exchange safe harbors. It describes how property owners can structure deferred and multiple-party exchanges to avoid actual and constructive receipt of boot to obtain nonrecognition on the exchange of properties. It demonstrates how property owners can use multiple safe harbors (such as a qualified intermediary and qualified trust) to protect exchange proceeds during the exchange interstice. It also considers the intricacies of the identification rules and the identification and exchange periods. The Article is adapted from Chapter 4 of the forthcoming treatise, Bradley T. Borden, Tax-Free Like-Kind Exchanges (Civic Research Institute 2008).
Number of Pages in PDF File: 34
Keywords: section 1031, like-kind exchange, qualified intermediary, qualified trust, qualified escrow account, identification period, exchange period, three-property rule, 200% rule, deferred exchanges, multiple-property exchanges, letter of credit
JEL Classification: K34
Date posted: April 7, 2008
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