WHAT HAPPENS WHEN BOTH THE SELLER AND BUYER ARE WANTING AN EXCHANGE?
This is not that unusual of a situation and is very simple to complete. You would handle the Seller’s Exchange just like a Phase I Delayed Exchange and you would handle the Buyer’s Exchange just like a Phase II Exchange. HOW DO I PREPARE A 1099 FORM? On a Phase I Exchange, you will prepare a 1099 form showing the Exchanger’s name, address and Tax ID Number (Social Security Number). The Exchanger is the only one that needs to sign this form. IT IS IMPERATIVE THAT YOU COMPLETE THE SECTION IN YOUR 1099 FROM THAT INDICATES THAT THIS PROPERTY IS PART OF AN EXCHANGE. WHEN CAN THE EXCHANGER GET CASH FROM THE EXCHANGE? If the Exchanger wants to receive a portion of his/her proceeds in cash, this must take place BEFORE any funds are sent to the Intermediary. Once the Exchanger tells you that he/she wants to receive money, contact the Intermediary right away to avoid any problems. Once the funds are deposited into the exchange account, the Exchanger cannot receive these funds until the exchange
