delayed exchange


Also found in: Financial.

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.

References in periodicals archive ?
t] represents the variable changes at time t (Portfolio flow or industrial production index or delayed exchange rates) at time t; xt represents the unobservable state variable; [h.
The client can also set up a delayed exchange and still take advantage of the tax deferral.
The time limits for completing the delayed exchange are hard and fast.
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.
A forward exchange occurs when a taxpayer sells the relinquished property, then later buys a replacement property within delayed exchange safe harbors, such as qualified intermediary and qualified escrow account [Treas.
In 1984, Congress wrote a law formalizing the delayed exchange process, Nelson said.
Although the Fitzgeralds really like the property, the timing doesn't meet the requirements of the easier-to-complete normal delayed exchange.
7] Delayed exchange is more usual but is, by no means, a unitary phenomenon.
Starker, the notion of delayed exchange was presented and affirmed by the Ninth Circuit Court of Appeals.
So, as long as one actually sells and transfers title to one's relinquished property before taking title to the replacement property, it is possible to perform a delayed exchange.
If the seller is willing to extend the closing date to give the investor time to sell his or her existing property, a standard delayed exchange is feasible.
But China has delayed exchanges and cancelled minor events with Taiwan.