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relinquished property

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relinquished property
The first property transferred in a 1031 exchange. The property received is called the replacement property.


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You must identify the property you want to buy or the Replacement Property in a period of two to three months after the sale of the previous property, also known as the Relinquished Property.
On September 15, 2000, the Internal Revenue Service released Revenue Procedure 2000-37 that provided guidelines for structuring reverse exchanges (a transaction in which replacement property is acquired by an accommodating party before the sale of the relinquished property and held as replacement property to complete the exchange).
If the replacement property's recovery period is shorter than that of the relinquished property, the longer period of the relinquished property applies to the replacement property.
 
 
 
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