Forward Exchange

Tax Issues:

  1. Relinquished and replacement properties are held for investment
  2. Replacement property not acquired from related party
  3. Exchangor has not received conclusive receipt of exchanges funds

Step 1: Exchangor/QI sell relinquished property

  1. Assignment of earnest money contract
  2. Notice of assignment
  3. Exchange Agreement

 

 

 


Step 2:

Exchangor mails identification letter to QI

 

Step 3: QI closes on replacement within 180 days

  1. Assignment of earnest money contract
  2. Notice of Assignment
  3. Authenticated wiring instructions



QI stands for qualified intermediary, or the Lone Star Exchange Company