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delayed exchange

   Also found in: Financial 0.01 sec.

delayed exchange n. an exchange of property to put off capital gain taxes, in which the funds are placed in a binding trust for up to 180 days while the seller acquires an "exchanged" (another similar) property, pursuant to IRS Code sec. 1031. It is sometimes called a "Starker" after the man who first used this method and survived an IRS lawsuit.



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But China has delayed exchanges and cancelled minor events with Taiwan.
Recently, the IRS provided guidance (See ILM 200836024) approving the combination of a reverse parking arrangement exchange and a forward delayed exchange resulting in two sequential 180 day exchange periods associated with one exchange transaction.
Two lessons we should learn from these delayed exchanges.
 
 
 
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