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LSDefine

Simple English definitions for legal terms

delayed exchange

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A quick definition of delayed exchange:

Delayed exchange: A type of property exchange where the owner gives their property to someone else to sell, and then has 45 days to choose at least one property to exchange it for. The person selling the property is called an intermediary. The intermediary must close on at least one of the chosen properties within 180 days and give any remaining money back to the owner. This type of exchange gives property owners more time and flexibility to exchange property and postpone capital gain taxes.

A more thorough explanation:

Delayed exchange is a type of property exchange that allows property owners to postpone paying capital gain taxes. In a delayed exchange, the property owner gives their property to an intermediary who sells it and uses the proceeds to buy a replacement property. This type of exchange is also known as a 1031 exchange.

Unlike a basic 1031 exchange, where the property owner swaps one property for another, a delayed exchange gives the property owner more time and flexibility to find a replacement property. The property owner has 45 days to designate at least one property to exchange the sold property for. The intermediary must then close on at least one of those properties within 180 days and give any remaining money back to the owner.

Let's say that John owns a rental property that he wants to sell. He bought the property for $200,000 and it is now worth $400,000. If John were to sell the property, he would owe capital gain taxes on the $200,000 profit.

Instead of selling the property and paying taxes, John decides to do a delayed exchange. He gives the property to an intermediary who sells it for $400,000. The intermediary then uses the $400,000 to buy a replacement property that John has designated within the 45-day period. John does not owe any capital gain taxes on the sale of the rental property because he has used the proceeds to buy a replacement property.

The delayed exchange allows John to postpone paying taxes and gives him more time to find a replacement property that meets his needs.

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i literally just need one A so i can relax before my ED decision
WorthlessAttractiveZombie
9:38
oh that's right USC might release
soapy
9:43
USC still has not looked at my app
WorthlessAttractiveZombie
9:43
when did you submit soapy?
soapy
9:44
10/16
WorthlessAttractiveZombie
9:44
to be fair it took them almost 2 months for me to go under review
soapy
9:44
Feelin a bit stressed, as I've got no date change for Michigan either despite applying 10/7
WorthlessAttractiveZombie
9:45
I have not had a date change either for Mich but I've seen people get in without one so who knows
I applied 9/25 to like 6 schools and some (Houston) have no date change yet so dw
soapy
9:46
But do people get in without addresses going long?
WorthlessAttractiveZombie
9:46
it's tough to tell because a lot of people type out their addresses long to begin with
soapy
9:46
Ah. I didn't. Looking back, my Mich supplement kind of sucks, so there's that
Mich overrated (Dean Z please let me in even tho i didnt apply and I am below both 25ths)
ClassyPleasantHeron
10:01
The "date changes" at Michigan really don't mean anything. We had to do them in undergrad admissions whenever a Georgia applicant picked the country instead of the state, because we'd have to remove the TOEFL requirement and reassign the application from the international application readers.
soapy
10:06
Classy, does that mean they may look at your application, and that look doesn't necessarily trigger any date change?
1a2b3c4d26z
10:06
Man
1a2b3c4d26z
10:07
Walkin to the bus
1a2b3c4d26z
10:07
What a good day to get into law school
ClassyPleasantHeron
10:11
@soapy: I don't know for sure about the law school. For undergrad, once the application is complete, it's assigned to a reader the following Monday. If we had to make any changes, it's because a reader saw something that needed to be changed and the application needed to be re-read after that change.
soapy
10:12
Ahh, got it. Thank you for the insight!
ClassyPleasantHeron
10:14
You're welcome. FWIW, I have no idea what's up with the address changes. We didn't have to do any of that, except for the Georgia state vs country kinds of things.
soapy
10:15
I've heard it theorized that some schools will change the address from "St." --> "Street" as they prepare to send out admissions packets. That's the rumor, anyways.
i think it just indicates a change in status like under review or stages of review
my stanford address went long as soon as it was marked complete lmao
soapy
10:25
I saw some Reddit adcom say that they can see any time we refresh the status checker; I wonder if it's a red flag if an applicant's checked it like 50 times in a day?
soapy
10:25
Also, can we send another LoR to a school that we've already applied to?
soapy
10:26
Or another essay?
10:30
i'll allow it
soapy
10:31
<3 thanks Fart Butt
1a2b3c4d26z
10:31
If I get rejected by a school bc I check my statuses during work then it wasn’t meant to be
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