Accordingly, 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 provided in this revenue procedure, whether entered into prior to or after the effective date of this revenue procedure.”

Private Letter Ruling 200111025 approves a non safe harbor exchange where the parking period was 18 months. Private Letter Rulings can be secured with the assistance of your accountant and can take upwards of six months for a position letter from the IRS. These position letters are specific to the Exchangor’s circumstances and cannot be relied upon as precedence.

Non safe harbor exchanges are inherently risky given they are outside the traditional 180 days. Forward and reverse exchange basic guidelines are followed with the exception of the end date.