Keeping on the subject of like kind exchanges.
ody Burden found a great deal on an office building. But he needed to sell the office building he owned, but didn’t want to lose the new office building. Bidding was hot and heavy, so he knew if he had a long settlement date he’s lose the office building. He went to his lawyer to ask what he should do. The lawyer replied, “How about a reverse like kind exchange. In that situation, you get a bridge loan from a bank and buy the other property and park the old property with a qualified intermediary. So long as they report the transaction on their taxes, its great.”

The lawyer called Sundasky Intermediary Company and they set up a Corporation to handle the transaction. After procuring the bridge loan which was secured by both old and new property, the old property was deeded to Sundasky Old Property Corporation and at that time Jody identified New Property to Sundasky. The new property was acquired by Jody, the same day. Within 180 days, Old Property was sold to Perry Prospector and the loan was partially paid off from the proceeds and Old Property was released from the Mortgage. No money went to Jody. Jody and Sundasky Old Property Corporation filed and reported the transaction on their tax returns. No income tax was payable.