BROWSE

Qualified Exchange Accommodation Arrangements

What is 'Qualified Exchange Accommodation Arrangements'

A strategy used in some 1031 exchanges where a third party, known as an "accommodation party," temporarily holds the real estate investor's relinquished or replacement property. The purpose of this arrangement is to help investors comply with section 1031 of the Internal Revenue Code, which allows investors to defer taking a capital gain or loss on the sale of real estate as long as the relinquished property is replaced by a "like-kind" property. Qualified exchange accommodation arrangements, while still subjecting investors to strict guidelines for the sale and purchase of like-kind properties, increase flexibility in the timing of the sales and simplify the investor's ability to qualify for the tax deferral.

Explaining 'Qualified Exchange Accommodation Arrangements'

This strategy was in use for many years, but was not formally recognized by the IRS until 2000. The IRS's approval of the procedure and establishment of specific qualification guidelines made investors' compliance with 1031 exchange rules more straightforward.


Because the purpose of such a transaction is to hold a property temporarily, these are also known as "warehouse transactions".


Further Reading


Shaky foundations: moving beyond “housing tenure”
www.tandfonline.com [PDF]
… With the burgeoning of the global telephone exchange that is the Internet, it is ever … show that the poorest households often have recourse to building rudimen- tary accommodation from cheap or … investor, a social landlord does not necessarily have to make a return reflecting the …

Changing inequalities in housing outcomes across Western EuropeChanging inequalities in housing outcomes across Western Europe
www.tandfonline.com [PDF]
… With the burgeoning of the global telephone exchange that is the Internet, it is ever … show that the poorest households often have recourse to building rudimen- tary accommodation from cheap or … investor, a social landlord does not necessarily have to make a return reflecting the …

A bird's eye view of OECD housing marketsA bird's eye view of OECD housing markets
www.oecd-ilibrary.org [PDF]
… With the burgeoning of the global telephone exchange that is the Internet, it is ever … show that the poorest households often have recourse to building rudimen- tary accommodation from cheap or … investor, a social landlord does not necessarily have to make a return reflecting the …

Improvising a market, making a model: social housing policy in ChileImprovising a market, making a model: social housing policy in Chile
www.tandfonline.com [PDF]
… With the burgeoning of the global telephone exchange that is the Internet, it is ever … show that the poorest households often have recourse to building rudimen- tary accommodation from cheap or … investor, a social landlord does not necessarily have to make a return reflecting the …

Democratic accountability and the exchange-rate policy of the euro areaDemocratic accountability and the exchange-rate policy of the euro area
www.tandfonline.com [PDF]
… With the burgeoning of the global telephone exchange that is the Internet, it is ever … show that the poorest households often have recourse to building rudimen- tary accommodation from cheap or … investor, a social landlord does not necessarily have to make a return reflecting the …

Tourism and economic development: A surveyTourism and economic development: A survey
www.tandfonline.com [PDF]
… With the burgeoning of the global telephone exchange that is the Internet, it is ever … show that the poorest households often have recourse to building rudimen- tary accommodation from cheap or … investor, a social landlord does not necessarily have to make a return reflecting the …


Leave a Reply

Your email address will not be published. Required fields are marked *