Exchange Accommodation Titleholder in 1031 Exchanges
An Exchange Accommodation Titleholder (EAT) is critical to 1031 reverse and improvement exchanges under the Internal Revenue Code. The EAT "parks" title to property so the investor can complete a tax-deferred exchange without simultaneously owning both properties.
Reverse Exchange Structure
- Investor identifies replacement property before selling relinquished property
- EAT acquires and holds title to the replacement property
- Investor sells the relinquished property through a qualified intermediary
- EAT transfers the replacement property to the investor within 180 days
Improvement Exchange Structure
- EAT acquires the replacement property
- Improvements are made while the EAT holds title
- The improved property is transferred to the investor as part of the exchange
- The improvement value counts toward the exchange amount
Compliance Requirements
- QEAA must be executed before the EAT takes title
- 180-day maximum holding period (no extensions)
- EAT must be unrelated to the investor
- EAT files its own tax returns
Related Terms
- Escrow — Exchange funds management
- Equity — Investment value being exchanged
- Closing — Transaction completion
Barnes Walker 1031 Exchange
Barnes Walker's real estate attorneys structure 1031 exchanges with EAT arrangements for Florida investors seeking tax-deferred property transactions. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC