OWNERSHIP & ENTITIES
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Swap and drop
Also called: swap & drop · exchange then distribute
Industry slang for completing an exchange and later distributing property interests from an entity to owners.
What it means in practice.
Like “drop and swap,” this is not a statutory safe harbor and can create significant tax issues depending on timing and intent.
Why it matters.
It is a planning phrase, not an IRS-approved recipe.
Additional notes.
Like “drop and swap,” this is not a statutory safe harbor and can create significant tax issues depending on timing and intent.
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