What is a non simultaneous exchange? What are the critical factors in qualifying a nonsimultaneous exchange for tax deferral? Explain
Answer)
A non simultaneous exchange is an exchange as the name indicates where one part of exchange takes place at one time and another part of exchange is performed at another point of time later.Here, the party other than seller holds the money who may be either the buyer or any third party.
After one exchange take place,the property that seller wish to purchase is identified and adherence has to be made within 45 days or property should be aquired and transaction completion must take place with in 180 days.
If the seller access any part of consideration resulting from sale or time period exceeded then the tax defferal will be lost.
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