A Safe Harbor Reverse Exchange is a real estate strategy that allows you to buy a new property before selling your current one, this helps delay paying taxes. In this process, an Exchange Accommodation Titleholder (EAT) temporarily holds the title to either your old or new property, ensuring you don’t own both simultaneously, which is not permitted. You have 45 days to identify the property you plan to sell and 180 days to complete the exchange. The EAT buys the new property, often with your money or a loan, and rents it back to you, so you can use it right away. This arrangement lets you benefit from the new property while the EAT holds the title. Once your old property is sold, the proceeds are used to purchase the new property from the EAT. Alternatively, the EAT can hold your old property until it’s sold. This approach allows for efficient property transactions while deferring taxes.
To learn more about the Reverse Exchange process, click here.
Ready to sell? Know your home’s worth, click here.
Homes for sale in Carmel Valley click here.
Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
