A common type of exchange designed to defer taxes when you sell your property (Relinquished Property) and purchase (Replacement Property.)
Purchasing a new property before you sell your existing property? Choosing a Reverse exchange may be an option. There are two types:
· Exchange First
· Exchange Last
An improvement exchange may be right for you by acquiring land and building your ideal structure.
In markets with limited supply, it may make sense for you to purchase unimproved land & build to meet your needs.
The 180 day timeline still applies to stay within the IRS Safe Harbor.