1031 Exchange Fort Worth

Structures

Reverse Exchange

A reverse exchange allows property owners in Fort Worth, TX to acquire replacement properties before selling their relinquished property. This structure is useful when you find an ideal replacement...

A reverse exchange allows property owners in Fort Worth, TX to acquire replacement properties before selling their relinquished property. This structure is useful when you find an ideal replacement property but have not yet sold your current property. Reverse exchanges require an Exchange Accommodation Titleholder to hold title to either the replacement property or the relinquished property during the exchange period.

This service is designed for property owners who need flexibility in timing or who have identified a replacement property opportunity that may not be available later. The reverse exchange process involves the Exchange Accommodation Titleholder purchasing and holding the replacement property while you work to sell your relinquished property. The Qualified Intermediary coordinates the transaction and holds funds in qualified escrow as needed.

Our reverse exchange service includes comprehensive planning and coordination with Exchange Accommodation Titleholders, Qualified Intermediaries, and qualified escrow providers. We help clients understand the complexities of reverse exchanges, including the timing requirements and costs involved. You must still meet the forty five day identification deadline and one hundred eighty day completion deadline, measured from when the Exchange Accommodation Titleholder acquires the replacement property.

Reverse exchanges are more complex than forward exchanges and involve additional costs for the Exchange Accommodation Titleholder services. However, they provide valuable flexibility for property owners who need to act quickly on replacement property opportunities in competitive markets like Fort Worth, TX.

What's included

  • Initial consultation to determine if a reverse exchange structure fits your situation
  • Coordination with Exchange Accommodation Titleholder for property acquisition and holding
  • Qualified Intermediary coordination for fund management and transaction facilitation
  • Guidance on forty five day identification period for relinquished property
  • Assistance with one hundred eighty day completion deadline planning
  • Documentation review and compliance verification for reverse exchange structure
  • Coordination between Exchange Accommodation Titleholder, Qualified Intermediary, and qualified escrow providers
  • Timeline management throughout the reverse exchange process

Common situations

  • A property owner who finds an ideal replacement property in a competitive market and needs to secure it before selling their current property
  • An investor who needs additional time to prepare their relinquished property for sale but has identified a replacement property opportunity
  • A property owner who wants to acquire a replacement property first to ensure they meet the one hundred eighty day deadline, then sell their relinquished property

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Questions we answer often

What is a reverse exchange and when would I use one in Fort Worth, TX?

A reverse exchange in Fort Worth, TX allows you to acquire a replacement property before selling your relinquished property. An Exchange Accommodation Titleholder holds title to the replacement property while you sell your current property. This structure is useful when you find an ideal replacement property that may not be available later, or when you need more time to prepare your relinquished property for sale. Reverse exchanges provide timing flexibility but involve additional complexity and costs.

What are the identification rules for reverse exchanges in Fort Worth, TX?

In Fort Worth, TX, reverse exchanges follow similar identification rules as forward exchanges. You must identify your relinquished property within forty five days of when the Exchange Accommodation Titleholder acquires the replacement property. The identification must be in writing and delivered to the appropriate parties. You then have one hundred eighty days from that date to complete the sale of your relinquished property and finalize the exchange. The Exchange Accommodation Titleholder must transfer the replacement property to you within this timeframe.

How does boot work in a reverse exchange in Fort Worth, TX?

Boot in a reverse exchange in Fort Worth, TX follows the same principles as forward exchanges. You must acquire replacement property of equal or greater value than your relinquished property to achieve full tax deferral. If the replacement property value is less, or if you receive cash or other non like kind property, that portion constitutes boot and may be taxable. Mortgage boot occurs if your replacement property debt is less than your relinquished property debt.

What is an Exchange Accommodation Titleholder and why do I need one in Fort Worth, TX?

An Exchange Accommodation Titleholder in Fort Worth, TX is a qualified entity that holds title to either your replacement property or relinquished property during a reverse exchange. This entity must be independent and cannot be disqualified persons such as your agent or related parties. The Exchange Accommodation Titleholder purchases and holds the replacement property while you sell your relinquished property, then transfers the replacement property to you to complete the exchange. This structure is required by Internal Revenue Service guidelines for reverse exchanges.

How long does a reverse exchange take in Fort Worth, TX?

A reverse exchange in Fort Worth, TX must be completed within one hundred eighty days of when the Exchange Accommodation Titleholder acquires the replacement property. You have forty five days from that date to identify your relinquished property in writing. The entire process, including the sale of your relinquished property and transfer of the replacement property, must occur within the one hundred eighty day period. These deadlines are strict and cannot be extended except in limited disaster circumstances.

What are the costs associated with a reverse exchange in Fort Worth, TX?

Reverse exchanges in Fort Worth, TX involve additional costs compared to forward exchanges. You will pay fees for the Exchange Accommodation Titleholder services, which typically include acquisition costs, holding costs, and transfer fees. There may also be financing costs if the Exchange Accommodation Titleholder needs to obtain a loan to purchase the replacement property. These additional costs must be factored into your exchange planning and may affect the overall economics of the transaction.

Example engagement

Example of the type of engagement we can handle

Service Type:

Reverse Exchange

Location:

Fort Worth, TX

Scope:

Complete reverse exchange coordination including Exchange Accommodation Titleholder services and replacement property acquisition

Client Situation:

Property owner who has identified an ideal replacement property but needs to sell their current property first, requiring a reverse exchange structure

Our Approach:

We coordinate with an Exchange Accommodation Titleholder to acquire and hold the replacement property, assist with identifying the relinquished property within forty five days, and guide the client through selling their current property and completing the exchange within one hundred eighty days

Expected Outcome:

Successful reverse exchange completion with the replacement property acquired first, relinquished property sold within the deadline, and full tax deferral achieved through proper coordination and compliance

Contact us to discuss your situation in Fort Worth, TX. We can share references upon request.

Identification rules

Plain English guide for IRS safe harbors

These rules protect exchange buyers in Fort Worth, TX. Each option is valid when you follow the written delivery requirements outlined by your Qualified Intermediary.

Three property rule

Name up to three properties of any value. Provide full legal descriptions and keep backups of delivery receipts.

Two hundred percent rule

Name more than three properties as long as aggregate fair market value stays under 200 percent of the relinquished price.

Ninety five percent rule

Identify any number of assets and close on at least 95 percent of the total value you listed.

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Educational content only. Not tax, legal, or investment advice. 1031 defers income tax on qualifying real property and does not remove transfer or documentary taxes.