The replacement property is available, but the property you plan to sell is still on the market.

The replacement property is available, but the property you plan to sell is still on the market.

A reverse exchange can let you secure the replacement while preserving section 1031 deferral. A separate exchange accommodation titleholder holds the replacement while you identify and sell the old property.

Arrange the financing, title and exchange documents before the replacement closing. The parking period gives you time to sell, but it has a deadline.

This Daily Tax Planning Strategy shows how the transaction works.