Make no mistake, this is big news. On September 15, 2000, after promising to do so since 1991, IRS issued safe-harbor guidelines (Rev. Proc. 2000-37) for Reverse Exchanges.

For now, suffice it to say that there are six rules to be followed, none of which are onerous. In brief:

title must be held by an exchange accommodation titleholder (EAT),

intent must be valid under rules,

written agreement with EAT must be established within 5 days

45 day identification period continues to be required,

property must be transferred within 180 days,

the combined time period that the EAT holds both the relinquished and replacement property does not exceed 180 days.

For the full text of the ruling, just call 720.581.2222 or e-mail me and I will send it to you right away. -

MIKE HESSE, CCIM, CPM
Real Estate & Investment Specialist
DIRECT - 720.581.2222
online at www.MikeHesse.com
email Mike@MikeHesse.com