Multi Asset Exchange

Types of Exchanges

Build to Suit Exchange Business Asset Exchange Copyright Exchange Delayed Exchange Improvement Exchange Intellectual Property Like-Kind Exchange Multi Asset Exchange Parking Arrangement Partnership Exchange Patent Exchange Personal Property Property Owned by Foreign National Property Owned Overseas Reverse Exchange Tenant Common Exchange Vacation or Personal Use Property Exchange

Strategic Property
Exchanges, LLC
11353 Reed Hartman Hwy.
Suite 300
Cincinnati, OH 45241

Toll Free: (800) 427-7212
Phone: (513) 412-3481
Fax: (513) 412-3482

IRS Section 1031 Exchange Explained

Multi Asset Exchange

It is not uncommon for a client to sell more than one property in an exchange and/or to acquire more than one replacement property in an exchange. The Regulations contemplate that more than one relinquished property can be included in the exchange and more than one replacement property can be included in the exchange, subject to the limitation on the number of possible replacement properties as set forth in the Regulations.

Why would I need a Multi Asset Exchanges Exchange?

- Sales of a Restaurant or Hotel, including the contents, land, building and franchise Agreement
- Sales of a division or manufacturing facility
- Sales of multiple parcels of real estate treated as one exchange

Things You Should Know

Must Separate Assets in Exchange Groups and Residual Groups into their General Asset Class or Product Class
Must offset all liabilities taxpayer receives as part of the exchange against all liabilities taxpayer is relieved from as part of the exchange
Exchange Group Surplus or Deficiency- comparing the aggregate fair market value of the properties received within an exchange group against those transferred
Must determine the Amount of Gain with respect to each exchange group, and the residual (entire) group as a whole
If the client transfers more than one relinquished property and the relinquished properties are transferred on different dates, the identification period and the exchange period are determined by reference to the earliest date on which any of the properties are transferred
Generally the client must use the 200% rule for identification

Is This Exchange Right For Me?
If you are selling multiple assets, including real estate that has significant amount of separately described business assets, such as a hotel or supermarket, a Multi asset exchange is right for you. With the recent increase in cost segregation studies, this is an issue that will only get more attention.

How To Get Started
Call our office at (513) 412-3483, our exchange coordinators are ready to discuss whether this type of exchange is right for you and how to get started. You may want to have your project details handy when we discuss your potential Multi Asset Exchange.

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