Atlanta Deferred Exchange
The ADE Difference

Types of Exchanges

The most common type of exchange is labeled a “forward exchange” and simply means that the investor sells the relinquished property before acquiring a like-kind replacement property. 

The most common type of exchange is labeled a “forward exchange” and simply means that the investor sells the relinquished property before acquiring a like-kind replacement property. If the timing does not work for this delayed exchange, there are many other types of exchanges that can be used depending on the circumstances.


A. Forward (or delayed) Exchange: where one property is sold and, within 180 days, another like-kind property is acquired.

B. Reverse Exchange: should be considered when the investor finds the property they want to buy and must purchase it before they are able to sell their current property.

C. Construction Exchange: can be utilized when an investor desires to build the eventual replacement property to certain specifications and/or on a separately acquired lot.

D. Multi-Asset Exchange: should be considered when the sale includes real property along with furniture, fixtures, equipment and other business components. Common examples might be in the sale of hotels, restaurants, hospitals and convenience stores. Once the asset being

sold is properly defined and the desired outcome understood, a corresponding strategy can be chosen to best maximize the value of the exchange.

E. Personal Property Exchange: is governed by this simple rule of thumb: if you can depreciate it, you can exchange it. This type of exchange may work for a large variety of assets from aircraft, business equipment and leased cars to a fleet of trucks. With this type of property, the like-kind requirement is very specific.

F. Other Exchanges: can be used with a number of other qualified assets. This includes collectibles – art, antiques and coin collections. Additionally, certain intangibles are also considered qualified such as trademarks, copyrights and songs.