Tax free land exchange. (not 1031)

[Bear Geiger]

I am trying to set up a deal whereby a few vacant lots in a subdivision are exchanged for a house of similar value. Is there a way to set this up without selling each property, but using some sort of direct swap? Preferably we would like to structure this so that reduces or eliminates the tax liability.

[Dave Foster]

@Bear Geiger Easily enough done (well easily is relative).  It's still a 1031 exchange.  But because you are swapping property  you technically do not need a qualified intermediary.   In the good old day's there'd be daisy chains of several individuals swapping to make it done.  Seems like there was always some land in West Texas thrown in the deal somewhere to make values match.

And that is your challenge.  You'll still have the same reporting requirements.  And the same reinvesting requirements.  So the determination and reporting of value as well as handling debt and cash is your challenge when not using a QI and doing the delayed 3rd party exchange.