Tax Deferred Exchanges and Use of an Accommodator

I. PRE EXCHANGE TAX PLANNING

1. Why have tax deferred exchanges become so popular?
2. Two types of tax deferred exchanges.
3. Determine if property qualifies for a tax deferred exchange.
4. Calculate amount of capital gain from sale of property.
5. Analyze Exchanger’s tax return.
6. Calculate amount to be invested in new property to defer maximum amount of capital gain.
7. Determine the advisability of refinancing.
8. Wording to be included in deposit receipt and escrow instructions.

II. ACCOMMODATION OF DELAYED EXCHANGE

1. Property is acquired on a day other then the day property is relinquished.
2. Four safe harbors allowed by Internal Revenue Service regulations.
3. Time limits in completing an exchange.
4. The number of identified properties allowed.
5. Timing restrictions for receiving monies or other property.
6. Purchase or transfer of the replacement property from the Seller by the Accommodator to Exchanger.

III. POST EXCHANGE TAX PLANNING

1. Calculate tax basis of newly acquired property for depreciation purposes.
2. Project passive income or loss from newly acquired property