Many property owners who would like to take advantage of the 1031 Exchange law find themselves with an opportunity to buy replacement properties before their first properties are sold. Fortunately, in 2000, the IRS changed its rules to allow this circumstance to be covered under the 1031 Exchange. The so-called "reverse exchange," is more complicated to transact than the regular sell-first-then-buy situation, but the outcome is the same: profits are wisely saved from capital gains tax.

Have a Real Pro in Your Corner
In any 1031 Exchange procedure, it's legally necessary to have a third party "Intermediary" involved, but for a reverse exchange, the need becomes even more pronounced. The intermediary in a reverse exchange is charged with holding the new property, which is now "parked" until the sale of the first property. As the holder of the title to the newly acquired property, your intermediary needs to be completely knowledgeable of tax law and how to hold the property as an "exchange accommodating title holder."

At Bankers Escrow Corporation, we've helped hundreds of clients with their reverse exchanges since the law swung in their favor. Unlike many 1031 Exchange companies, our team is composed of experts in the field--from CPAs and attorneys, to exchange specialists, and escrow officers. We work closely with clients nationwide to ensure smooth, easy-to-understand transactions.

If you or your client are faced with a reverse exchange, contact a specialist at Bankers Escrow Corporation. We offer free consultations on all types of 1031 exchanges, and escrow services. At Bankers Escrow Corporation, we understand the importance of a successful exchange, and conduct each transaction with precision and care.