Tax rules have required the exchange to be simultaneous or toidentify and acquire replacement properties shortly afterwards.However, taxpayers have often found it necessary to acquire thereplacement property before selling their current property--a"reverse" deferred exchange that was not addressed by tax rules.Taxpayers have often used third-party intermediaries to holdreplacement properties in "parking transactions," but this has notalways satisfied tax regulators.
In the new rule, the IRS has outlined rules for structuringexchanges with such third-party intermediaries so as to preservetax benefits. The rules do not answer all questions raised aboutStarker exchanges, and exchanges may be structured differentlywithout losing the tax benefits, according to the consulting firmArthur Andersen.
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