Answer
Aug 14, 2025 - 10:42 AM
You have to be very careful in what's called a related party exchange. The IRS frowns on related party exchanges because of the opportunity for abuse and for ultimately the family itself to end up paying less taxes than they would if they were transacting with third parties. And, by the way, this can get a little bit detailed, so I'm happy to discuss this with you offline. But the key in a related party transaction is that everything has to transact at market prices, and the folks doing the exchange have to own their replacement property for a specific amount of time. So there's a look-back period where the original exchange could be disallowed. So there is IRS guidance on when related party 10-30-mile exchanges will be allowed, and I would be happy to go through the details on that with you. But, yeah, it's more that I can get into. Just have a quick answer on this call. But happy to So we'll walk through that with you and I can send you some information as well.
