Non-Safe Harbor Reverse Exchange
In a United States Tax Court case, Estate of George H. Bartell Jr. et al. v. Commissioner, 147 TC No. 5, a replacement property was held by the exchange company in a reverse exchange that extended well beyond the, later established, 180-day safe harbor timeframe of Rev Proc 2000-37. Upholding the exchange the court declined to apply the benefits and burdens test to determine whether the true ownership of the property was held by the exchange company.