Reverse and improvement exchanges are two of the most complex yet highly useful exchange structures available for clients to maximize their tax savings. Over the last decade IPX1031 has participated in structuring and implementing several thousand of these highly specialized exchanges. Also known as “parking” or “warehousing” transactions, reverse and improvement exchanges require the Qualified Intermediary to hold title to either the client’s old or new property pending the completion of the exchange. To ensure a smooth and successful parking transaction IPX1031 coordinates the entire exchange process with the client’s tax counsel, lender, environmental consultant, title company and settlement officer. IPX1031 utilizes the best and most conservative exchange structures and business practices available, such as filing annual federal and state tax returns showing ownership of the client’s property while it is parked, as required for a valid reverse or improvement exchange under the safe harbor protections of Revenue Procedure 2000–37.

IPX1031 also provides its clients with the often desirable option of segmenting their parked properties into separate limited liability companies. The protection afforded by utilizing this type of entity ensures that the client’s property will be safe while IPX1031 holds title and completes the exchange. Due to the inherent complexity of reverse and improvement exchanges it pays to entrust your valuable business assets with IPX1031, the Qualified Intermediary with a proven track record of successful exchanges. IPX1031's National Reverse and Improvement Exchange Division has staff attorneys and tax deferred exchange professionals who have substantial experience in structuring and managing these complicated exchanges for all types of single and multiple asset real property and tangible and intangible personal property transactions.

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