What are the basic IRS requirements for an exchange?
The sale of “relinquished property” (the property being sold) and purchase of “replacement property” (the new property being purchased) must be interrelated. You may not simply sell a property and later purchase another property. B) An independent 3rd party, a Qualified Intermediary (or QI) must facilitate your exchange. The QI creates documentation that meets all IRS exchange guidelines including establishing the required interdependence of your sale(s) and purchase(s) and the right of the QI to receive and control the funds. C) You may not have actual or constructive receipt of the “exchange proceeds” (funds); the QI must control the money. Our Bank Guaranty fully protects your funds even though they must remain under the control of Amherst during your exchange. D) All replacement properties must be qualifying “like-kind” property held for investment. Like-kind in the context of real estate means real property for real property (an apartment complex can be traded for raw land; a trip
