FORWARD EXCHANGE

This is the standard transaction where your property is sold and the proceeds are reinvested in a new piece of property. For more details about the transaction see our engagement letter and related exchange agreement.

 Within 45 days of the sale, you must identify the potential replacement properties to us. Your identification must be in writing and must clearly describe the properties. You may identify up to three properties within the rules, but if you need to identify additional properties please call us and we’ll explain the two exceptions (the 200% rule and the 95% rule).

 You must acquire one or more of the identified properties within 180 days of the sale. In the event that the 180 day period starts in one tax year and ends in another, we recommend that you request a filing extension for your federal income tax return since replacement property must be acquired prior to the due date for your return.