In any event, Bartell would not have met the safe-harbor requirements because the exchange facilitator held title for approximately 17 months, far beyond the 180-day QEAA
After the Relinquished Property closing, the investor assigns the "call" provision of the QEAA
to the Qualified Intermediary, who then uses the sales proceeds to repay the funds the EAT borrowed from the investor.
QEAA Requirement--The taxpayer must enter into a written qualified exchange accommodation agreement with the EAT within five days following the transfer of property to the EAT.
The first is that the length of time any one piece of property may be held in a QEAA by an EAT is 180 days regardless of whether it is the relinquished or replacement property.
Taxpayer identifies qualifying realty (replacement property) with a FMV of $235,000 and enters into a QEAA with an EAT to purchase (park) the property from the seller.
Unlike Example 1, the transaction in Example 2 will be protected by the new safe harbor and will qualify for like-kind exchange treatment (i.e., the property will be considered held in a QEAA) if all of the following conditions are met:
Property is held in a QEAA if all of the following requirements are met:
Property will not fail to be treated as being held in a QEAA as a result of any one or more of the following:
To satisfy the procedure, property must be held in a QEAA, as follows:(33)
Within five business days of the transfer of QIO in the replacement property, the taxpayer enters into a written agreement (i.e., QEAA) with the EAT providing that the latter holds beneficial ownership for the taxpayer to facilitate a Sec.
The taxpayer and the EAT must enter into a written QEAA
no later than five business days after the initial transfer of property under the QEAA
No later than five business days after the transfer of qualified indicia of property ownership to the EAT, the taxpayer and the EAT enter into a written agreement (the QEAA
) that provides that the EAT is holding the property for the benefit of the taxpayer to facilitate an exchange under Sec.