It is naive, however, to contemplate securing a reverse
mortgage without noting the curious incentives (some might say distortions) state and federal statutes provide.
mortgage is aptly named because the payment stream is reversed.
The cases in which a taxpayer failed to qualify a purported reverse
exchange under Sec.
If the seller isn't willing to delay the closing until you dispose of the relinquished property, a reverse
exchange may be an attractive alternative.
Regardless of the form of the acquisition, the reverse
acquisition rule requires the consolidated group whose former shareholders own more than 50% of the new parent corporation's stock to be the continuing consolidated group.
Other practitioners believe that a reverse
exchange is valid like-kind exchange.
Because the proceeds of a reverse
mortgage constitute borrowed funds, they are not subject to income tax.