Consoldidated Reverse Management, Inc. ("CRM") provides "non-safe" harbor exchange services for investors whose transactions fall outside the "safe harbor" guidelines issued by the IRS last year (in Rev. Proc 2000-37). When it is not possible to sell the relinquished property or finish construction in a build-to-suit situation within 180-days, then the transaction will not fall within the IRS safe harbor rules. CRM provides the services necessary to qualify the transaction as a tax-deferred exchange.

In those instances where a property owner cannot meet the 180 day IRS "safe harbor" restrictions but still wants a "replacement property" to qualify in its transaction as a valid tax-deferred exchange, CRM can take title to the replacement property, build the required improvements and when the improvements are completed, transfer it back to the taxpayer in exchange for its sale of relinquished property. CRM's services also include investing equity in the property, having a more significant involvement in the ownership of the parked property and supervising the construction of improvements to the property.

These "non-safe" harbor transactions are much more complex than "regular" exchanges and require customized solutions to fit the particular circumstances of the exchange. In order for CRM's activities not to be characterized as acts of the taxpayer's agent, CRM must have sufficient "benefits and burdens" of ownership; this is a test which is determined on a case-by-case basis. If your reverse exchange includes construction or non-safe harbor issues, we will be glad to discuss the various ways CRM can work with you to resolve them.

Consolidated Reverse Management, Inc. ("CRM") is an affiliate of Reverse Exchange Services, Inc. ("RES").