Safe Harbors and Careful Planning Make Deferred Exchanges a Valuable Tool

34 Pages Posted: 7 Apr 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).

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

Suggested Citation

Borden, Bradley T., Safe Harbors and Careful Planning Make Deferred Exchanges a Valuable Tool. Journal Taxation of Investments, Vol. 25, p. 43, 2008. Available at SSRN:

Bradley T. Borden (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street
Brooklyn, NY 11201
United States


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