Delayed Exchange Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Delayed Exchange, written in plain English, along with examples of how it is used.

What is Delayed Exchange?

n. Pursuant to IRS Code sec. 1031, funds from one property sale are placed in binding trust for up to 180 days while a property seller acquires another property. This exchange puts off capital gain taxes and is sometimes referred to as a “Starker,” named after the man who won an IRS lawsuit after using this method.