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While 1033 exchanges are similar to 1031 exchanges, there are notable differences including:

  • The types of properties that qualify as “similar” properties for a Section 1033.
  • No qualified intermediary is needed for a Section 1033 because there is no concern about the taxpayer receiving the funds.
  • A longer timeframe to identify replacement property and reinvest proceeds – generally up to two years, or longer in circumstances where the involuntary conversion arises from a federally declared disaster.

Frequently Asked Questions

What type of replacement property will qualify for a 1033 exchange?

What is an involuntary conversion?

How do the involuntary conversion rules work?