Donald DeCleene and Doris DeCleene - Page 19

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          procedure describing the Commissioner’s conditions for qualifying           
          reverse exchanges for nonrecognition of gain under section                  
          1031(a)(1).  See Rev. Proc. 2000-37, 2000-40 I.R.B. 308.  Like              
          the deferred exchange regulations that implement section                    
          1031(a)(3), the revenue procedure provides for third-party                  
          qualified intermediaries as exchange accommodation titleholders             
          in carrying out the “qualified exchange accommodation                       
          arrangements” whose use will qualify reverse exchanges for                  
          nonrecognition of gain or loss under section 1031(a)(1).  Like              
          the deferred exchange regulations, the revenue procedure provides           
          a safe harbor; it states that “the Service recognizes that                  
          ‘parking’ transactions can be accomplished outside of the safe              
          harbor provided this revenue procedure”, but that “no inference             
          is intended with respect to the federal income tax treatment of             
          ‘parking’ transactions that do not satisfy the terms of the safe            
          harbor”.  Rev. Proc. 2000-37, 2000-40 I.R.B. 308.                           
               Because the revenue procedure is prospectively effective, it           
          does not apply to the case at hand.  See id.   We therefore have            

          Application of Section 1031 to Reverse Exchanges, 21 J. Real Est.           
          Tax. 44 (1993); Handler, Pricewaterhouse Coopers Forwards                   
          Proposed Guidance on Reverse Exchanges, 2000 TNT 16-27, Doc.                
          2000-2588 (Jan. 25, 2000); Safe Harbor Guidance for Reverse Like-           
          kind Exchanges To Come Soon, IRS Official Promises, Highlights              
          and Documents 1157 (Jan. 25, 2000).                                         

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