surety

* The accommodation party must hold legal title to the property [during the transaction] and also hold other indicia of ownership that are recognized under commercial law, such as a contract for deed.

On the taxpayer's behalf, an accommodation party purchased property intended to be replacement property for the park property.

Parking transactions involve an accommodation party that holds property in an exchange so that a taxpayer does not concurrently own both the relinquished and replacement exchange properties.

In Letter Ruling (TAM) 200039005,(16) a taxpayer structured a deferred exchange using an accommodation party. When the planned sale of the relinquished property fell through, but the seller of the replacement property insisted on closing that leg of the exchange, the taxpayer closed on the replacement property and titled it in the accommodator's name.

The IRS treated the taxpayer's payments under the swap as servicing the debt, and treated the swap counter-party as merely an accommodation party. By recharacterizing the transaction as a loan, the Service was able to treat the taxpayer as having repatriated foreign earnings under Sec.