Hybrid Exchanges

One of the greatest benefits of tax deferred exchanging as found in both Section 1031 and the reverse exchange Revenue Procedure 2000-37, is the ability to mix and match strategies into a blended effort which utilizies one or more compliant approaches to achieve the goals of the Exchager.

When multiple approaches are utilized, this is referred to as a hybrid exchange. For instance, if an Exchanger owns multiple properties, it may be advantageous to utilize a combined forward and reverse exchange approach to enable the acquisition of an ideal replacement property, while leveraging the flexibility and control of a reverse exchange to better control overall exchanging logistics.