The ‘safe harbor’ guidelines are a set of rules provided by the IRS to facilitate like-kind exchanges, such as the 1031 Reverse Exchange, including:
- An agreement must be entered into between the exchanger and an Exchange Accommodation Titleholder (EAT) within 5 days of the EAT taking title to the property to be parked.
- The combined time frame that the relinquished property and the replacement property are held in a Parking Arrangement cannot exceed 180 days.
- In an Exchange Last, identification of the relinquished property must be made no later than 45 days after the EAT acquires the title to the parked replacement property.
For more information on Safe Harbor Reverse Exchange requirements, read our guide for more details.