Reverse Exchange Planning

Reverse exchange planning service helps Chicago, IL investors structure compliant like kind exchanges by acquiring replacement property first, then selling relinquished property within required deadlines. This service provides strategic guidance for investors who need to secure replacement properties before selling their current property to defer capital gains taxes.

Our team works with Chicago, IL investors to understand their exchange objectives, replacement property opportunities, and sale timelines. We coordinate with Qualified Intermediaries to establish exchange structures and work with qualified escrow agents to ensure proper fund handling. The service includes deadline monitoring to ensure the relinquished property sale occurs within the required timeframe to maintain exchange compliance.

Reverse exchange planning is ideal for Chicago, IL investors who have identified replacement property opportunities that require immediate action and need support structuring the exchange, coordinating the sale of relinquished property, and managing the entire process. We help investors understand the timing requirements, identification rules, and documentation needs to maintain exchange compliance throughout the transaction.

What We Include

  • Strategic reverse exchange structure planning
  • Coordination with Qualified Intermediary for exchange setup
  • Replacement property acquisition coordination
  • Relinquished property sale deadline monitoring
  • Qualified escrow coordination for fund handling
  • Exchange documentation support
  • Stakeholder coordination and updates
  • Compliance monitoring throughout exchange process

Common Situations

Chicago, IL investor identifies replacement property opportunity requiring immediate action and needs reverse exchange planning

Investor needs to secure replacement property before selling relinquished property and requires reverse exchange structure

Investor with time sensitive replacement property opportunity and needs reverse exchange planning to coordinate entire process

Example of the type of engagement we can handle

Service Type

Reverse Exchange Planning

Scope

Structure reverse exchange from acquisition of replacement property to sale of Chicago relinquished property within required deadlines

Client Situation

Investor identifies industrial replacement property opportunity requiring immediate acquisition, needs reverse exchange planning to coordinate sale of Chicago multifamily property

Our Approach

Coordinate with Qualified Intermediary for reverse exchange structure, facilitate replacement property acquisition, monitor relinquished property sale deadline, coordinate with qualified escrow agents

Expected Outcome

Compliant reverse exchange structure with replacement property acquired and relinquished property sold within required timeframe, all documentation properly coordinated

Educational content only. Not tax, legal, or investment advice.

Frequently Asked Questions

What identification rules apply to reverse exchange planning for Chicago, IL investors?
Chicago, IL investors using reverse exchange planning must properly identify the replacement property being acquired and coordinate with their Qualified Intermediary to ensure compliance with IRS requirements. Our reverse exchange planning service helps structure the exchange and coordinate all documentation to maintain compliance.
How does boot affect Chicago, IL investors in reverse exchanges?
Boot for Chicago, IL investors in reverse exchanges can occur if cash is used to acquire replacement property, debt is increased, or personal property is included in the transaction. Our reverse exchange planning service documents all potential boot sources, but investors should work with their tax advisors to calculate the correct tax impact for their specific exchange situation.
What happens if Chicago, IL investors cannot sell relinquished property within the required timeframe in a reverse exchange?
If Chicago, IL investors cannot sell relinquished property within the required timeframe in a reverse exchange, the exchange may fail and taxes become due. Our reverse exchange planning service monitors sale deadlines and coordinates with qualified escrow agents to help ensure timely sales that meet IRS requirements.
How does reverse exchange planning help Chicago, IL investors coordinate with Qualified Intermediaries?
Reverse exchange planning helps Chicago, IL investors coordinate with Qualified Intermediaries by establishing exchange structures, coordinating replacement property acquisition, and ensuring proper fund handling throughout the exchange process. Our service works directly with Qualified Intermediaries to maintain compliance and meet all timing requirements.
Can Chicago, IL investors use reverse exchange planning when replacement property opportunities require immediate action?
Yes, Chicago, IL investors can use reverse exchange planning when replacement property opportunities require immediate action and they need to secure properties before selling relinquished property. Our reverse exchange planning service helps structure these transactions while maintaining compliance with all IRS requirements and timing deadlines.

Ready to Get Started?

Contact our team to discuss how Reverse Exchange Planning can support your 1031 exchange in Chicago, IL. We'll help you navigate the 45-day identification deadline and 180-day closing requirement.