• Exchange from fully depreciated property to a higher value property that can be depreciated.

• Exchange from property that cannot be refinanced. For example, moving from vacant land to improved property, which can support a new refinance loan, and will thereby give the client the ability to obtain cash after the acquisition of the replacement property.

• Exchange from non-income producing raw land to improved property to create a positive cash flow from the rental income.

• Exchange from a property with maximized or minimal cash flow (an apartment building) to a higher cash flow property (a retail shopping center) to generate a larger cash flow.

• Exchange from a stagnant or slowly appreciating property to a property in an area with faster appreciation.

• Exchange for a property or properties that may be easier to sell in the coming years.

• Exchange to meet the client’s location requirements. For example, the client moves to another state and wants to have their investment property nearby for management purposes.

• Exchange to fit the lifestyle of a client. For example, a retiree may exchange for a property requiring reduced management responsibility so they can do more traveling.

• Exchange from several smaller properties to one larger property to consolidate the benefits of ownership and reduce management responsibilities.

• Exchange from a larger property to several smaller properties. Exchanges can be used for estate planning purposes to divide an estate among several children or for retirement reasons.

• Exchange to a property the client can use in his or her own profession. For example, a doctor may exchange from a rental house to a medical building to use for his/her practice.

• Exchange from a partial interest in one property to a fee interest in another property.

• Exchange from a management intensive fee interest in real estate to a professionally managed triple net leased property where the lease, including options, has 30 or more years remaining.

• Exchange to diversify and minimize risk to your real estate portfolio. For example, exchange from residential to commercial real estate or exchange into property located in other regions of the United States.

This communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing or recommending to another person any tax-related matters addressed herein.