Current estimated sales price of the old property
Old Property purchase price plus improvements
Current debt amount
This is the percentage of income earned on the Old Property based on the equity. Equity is the FMV less the debt.
Commercial real estate is 39 years, residential real estate is 21 years. Other types of assets typically have shorter windows
For real estate, the rule of thumb is that 20% of the basis is allocated to land and therefore not subject to depreciation
The combined Tax rate (%)
This is the purchase price of the New Property
Debt amount
Assume same income potential
Assume equity is equal to the exchange proceeds from the Old Property sale
The combined Tax rate (%)
This is the fee charged by a QI to facilitate the delayed exchange
This is the rate of interest paid by the QI while it holds the exchange proceeds
Expected months to acquire the new property
This is a typical fee for a reverse exchange of normal complexity
Expected months to sell the old property
There is no New Property during a Delayed Exchange
The Old Property has been sold to its buyer
Less exchange fee
Typically, there are no exchange proceeds in a reverse exchange
Less exchange fee