Reverse Like-Kind Exchanges: A Principled Approach

Abstract:     
Even with the Internal Revenue Service's publishing Rev. Proc. 2000-37, there is no authoritative guidance regarding true reverse exchanges. This Article examines the principles and policy supporting nonrecognition treatment of like-kind exchanges. It then describes how courts have interpreted the exchange requirement in light of the continued-investment purpose of section 1031. Extrapolating this interpretation to reverse exchanges, the Article recommends a workable model for structuring true reverse exchanges that should qualify for section 1031 treatment.

Number of Pages in PDF File: 54

Keywords: section 1031, like-kind exchange, reverse exchange, real estate exchange

Accepted Paper Series