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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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lawguy we're nearly stats twins :D
13:13
I saw that, and I saw you got the Georgetown interview invite yesterday too! Goodluck!
you too haha, i was super surprised to have received one so early not gonna lie
i heard the group interview is really chill and I'm kinda excited to do it
seems cool
13:14
Yeah, 7sage has a page that talks about the questions for each schools interview, GULC's seems unique
13:15
Idk how much of an effect it has on admissions chances but should be cool either way
ive heard the conversion rate for gulc group interview is pretty high even moreso if you have the stats
it's hard to say but i've also heard that the group interview is harder to get than the alumni interview. but who really knows tbh
im p sure they don't interview everyone and getting one this early should be a great sign!
13:16
Yeah I've heard the same ab the group interview
13:17
So maybe I'll see you in D.C. a year from now lmao
initiallaw
13:32
Speaking of stat twins kazuyamishima were exact stat twins lol
17:13
Anyone going to the UGA zoom thing on the 22nd?
17:16
My bad, 24th*
Idk, what's it for?
@Law-Guy: How'd you get the Vandy fee waiver?
17:32
What does going ur3 in 3 days mean at Uva 😅
that you will get UR2 in 3 more
17:33
somethings gotta give
I’m new. What’s the UR and UR2?
17:35
I already went ur2. It’s the 3rd status date change
17:35
@RustyWrangler: attend one of their virtual info sessions and they'll send you a fee waiver
@Law-Guy: Awesome, thanks! I'll sign up rn!
i'm not entirely sure
They've recently been sending a lot of interview invites
It means status change?
17:47
Someone said there is a wl/r wave coming but how can that even be predicted 😭
17:48
Where?
Quillinit
17:50
This is obviously not true for UVA. Past years show they don't send any non A results until December
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