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19
May

API’s 25th Anniversary

Asset Preservation’s 25th Anniversary!

"It is with great pleasure (and a bit of shock) that I announce API’s 25th anniversary! In 1990, three of us started API as a subsidiary of Placer Title Company in Northern California. This was when there was very little 1031 activity compared to the activity we see now. In our desire to grow nationally, and to provide greater security for client exchange funds, we successfully sold the company to Stewart Title Company in 1993.

This is where the memory gets blurry. I spent approximately 12 years traveling the country. I attended countless Stewart conferences, meeting the incredible Stewart family of associates, from coast to coast. Many of those friendships continue to this day. I gave more presentations, classes and lectures on 1031 exchanges than I can remember, while meeting outstanding people with whom I still have the pleasure of working. Expanding API nationally also allowed me to see much of our beautiful country, an opportunity I most likely would not have had otherwise. It was the work of the young, and I highly doubt that I could repeat that performance today…"

To read the message in its entirety, Read Message from API’s Co-founder and President.

Asset Preservation's 25th Anniversary

Happy 25th Anniversary API!

Javier G. Vande Steeg


Javier G. Vande Steeg, President


Home Price Gains Continue to Rise Outpacing Inflation & Wage Gains

Home Price Gains Continue to Rise and Outpace Inflation and Wage Gains

U.S. home prices increased 0.1% during February, and were up 4.2% compared to February 2014, according to S&P/Case-Shiller home price index (HPI). Year over year, the 10-city composite home prices increased 4.8%, up from 4.3% in January, while the 20-city composite showed prices increased 5.0%, up from a 4.5% increase in January. Read more…


1031 Basics: Partial Exchanges

1031 Basics

Although a 1031 exchange allows investors to defer 100% of their capital gain tax liability, some choose to defer only a partial amount of their tax liability. In a partial exchange, the taxpayer defers a portion of the taxpayer’s capital gain taxes, but also pays taxes on capital gains equal to: 1) cash proceeds received; and/or 2) a reduction on their replacement property debt obligations. Both of these result in the receipt of "boot" which refers to any property received in an exchange that is not considered like-kind. To learn more about partial exchanges, or what is required for full tax deferral in a 1031 exchange, click on Partial Exchanges and Requirements for Full Tax Deferral.


API Presenting at 2015 BOMA International’s Every Building Conference & Expo

Scott Saunders, Senior Vice President of Asset Preservation, Inc. (API), will be presenting at the 2015 BOMA International Every Building Conference on the topic of “What is Behind the Surge in 1031 Exchange Activity?” from 2:15-3:15 p.m. on June 29th at the Los Angeles Convention. This presentation provides a concise overview of 1031 tax deferred exchanges for principals, brokers, and asset managers. In addition to covering critical IRS time deadlines, the presentation will focus on “like-kind” requirements including air rights, communication easements and other creative exchange alternatives. The presentation will address partnership/LLC scenarios faced by many BOMA members and how reverse/improvement exchanges can improve investment returns.


Will Water Restrictions Out West Impact Home Values?

Will Water Restrictions Out West Impact Home Values?

That’s a question many people in the housing industry have been asking lately. Although it will take some time to realize the full impact of the restrictions on property values (and what’s to say water supplies won’t return to historical norms next year, resulting in a lifting of the restrictions), one can be sure that some prospective home buyers have already crossed California off of their list. Read more…


Attend A Complimentary 1031 Exchange Webinar For CPE Credit

Title: 1031 TAX-DEFERRED EXCHANGE ISSUES IN 2015
Presenter: Scott Saunders, Asset Preservation, Inc.

Course Description
This one-hour webinar covers critical IRS time deadlines in deferred exchanges, like-kind requirements (including creative property variations like easements and personal property exchanges), partnership/LLC scenarios (and how to best structure in advance of a 1031 exchange), reverse and improvement exchanges, related party transactions, and how to avoid common pitfalls and other 1031 exchange related issues. This webinar will provide a summary of current developments regarding possible tax reform and the implications on 1031 exchanges. It also addresses applicable Revenue Rulings, PLRs, and other recent IRS guidance on current issues related to exchanges.

Course Details:
Date: Wednesday, June 10, 2015
Time: 8:00 a.m. – 9:00 a.m. (PST)
Cost: Free
CPE Credits: 1.0 hour (Accountants & CPAs)

View Details and Registration Info at cpaacademy.org


Racing to Buy Homes Sight Unseen

Racing to Buy Homes Sight Unseen

Residential real estate to be the next frontier for speed-based investing

Institutional-backed purchasers of single family rental properties are looking at quantitative analysis as a way to buy a shrinking supply of available homes. Read more…


Raleigh, NC, is strongest office market, says Morgan Stanley

Using 11 different indicators of office market strength, Morgan Stanley has ranked 14 major metropolitan areas from strongest to weakest. Read More…


IRS Provides Tax Relief for Disaster Situations

Racing to Buy Homes Sight Unseen

Certain taxpayers may qualify for postponement of the exchange deadlines in Section 1031 if the relinquished or replacement property is located in a Presidentially declared disaster area, or if the principal place of business of a party to the transaction is located in a covered disaster area. Taxpayers can also qualify by satisfying other criteria. For updates or more information, Visit the IRS: Tax Relief in Disaster Situations.


1031 Exchanges Under Attack! Help Support the Real Estate Industry Now

Take Action – Contact Your Representatives

Contact your congressional representatives using the link below and send a message to Congress that Section 1031 provides a powerful economic tool for stimulating the economy. It only takes one minute to voice your support for 1031 exchanges.

Voice your support for 1031 exchanges

VOICE YOUR SUPPORT FOR 1031 EXCHANGES


1031 Exchange Resources

Open a 1031 ExchangeOpen an Exchange

1031 Exchange Materials1031 Materials

1031 Exchange NewsPast
eNewsletters

1031 Exchange Webinar and PodacatWebinar/Podcast


06
Apr

Recent Related Party Case – U.S. Court Of Appeals

U.S Court of Appeals Affirms Trial Court Decision in Favor of the IRS

In the recent case of North Central Rental & Leasing, LLC ex. Rel. Butler v. United States, 2015 WL 855725 (U.S.C.A. 8th Cir., March 2, 2015), the U.S. Court of Appeals affirmed the decision of the trial court in favor of the IRS in denying a taxpayer’s deferral of tax under Section 1031. This case involved two related companies (one of which was the subsidiary of the other), and a like-kind program exchange of construction equipment and machinery.

The transactions involved the subsidiary company, as the exchanger, conveying machinery and equipment to a Qualified Intermediary (QI), who then sold the relinquished property to an unrelated third party. The parent company then purchased from the manufacturer the equipment and machinery identified by the subsidiary as replacement property, because the parent could acquire the property from the manufacturer on more favorable terms than the subsidiary. The subsidiary then purchased the machinery and equipment from the parent as the subsidiary’s replacement property to complete the exchange.

The court determined that this strategy allowed the two related companies to cash out of the investment in equipment in a manner that would not be possible if this was accomplished solely by the subsidiary company. The court deemed the transactions unnecessarily complex, and attributed that complexity to a desire to sidestep IRC Section 1031(f).
 Read more…


Ernst And Young Study Supports 1031 Exchanges

According to a recent Ernst and Young Study, The Economic Impact of Repealing Like-Kind Exchange Rules, the study finds that repeal of Section 1031 results in less federal revenue, shrinks the economy by $8.1 billion, discourages investment, negatively impacts the overall economy with an unfair concentration in certain industries, burdens certain businesses and taxpayers and is at cross-purposes with the goals of tax reform. The analysis finds that repeal of the like-kind exchange rules would increase the cost of capital in the economy, even when combined with lower tax rates. The higher cost of capital is found to discourage business investment which adversely affects the overall economy.

Repealing Section 1031 would subject businesses that rely on these rules to a higher tax burden on their transactions, resulting in longer holding periods, greater reliance on debt financing, and less productive deployment of capital in the economy. Many affected businesses are in pass-through form, which would not receive a benefit if the revenue from repeal of like-kind exchange rules is used to finance a lower corporate income tax rate. For an overview of this study, click on this link, Ernst and Young 1031 Exchange Study Overview.

Take Action – Contact Your Representatives

Contact your congressional representatives using the link below and send a message to Congress that Section 1031 provides a powerful economic tool for stimulating the economy. It only takes one minute to voice your support for 1031 exchanges.

Voice your support for 1031 exchanges

VOICE YOUR SUPPORT FOR 1031 EXCHANGES

Customize It

Top 20 Real Estate Markets

Industry experts from the Urban Land Institute (ULI) and PriceWaterhouseCoopers (PWC) release their projections for the top 20 housing markets with lower costs of living and better than average employment prospects. Read More…


Best And Worst States To Be A Taxpayer

Want to know which states have the most and least burdensome tax rates? WalletHub analyzed how state and local tax rates compare to the national median in the 50 states comparing eight different types of taxation in order to determine: 1) Which states have the highest and lowest tax rates; 2) how those rates compare to the national median; 3) which states offer the best tax rates when adjusted by the cost-of-living index. Read More…


Call Us

Call Asset Preservation

Asset Preservation would appreciate the opportunity to work with you on your next exchange regardless of how simple or complex. Give us a call at 800-282-1031 to open a 1031 exchange.  Or to open a 1031 exchange online, email us at info@apiexchange.com.

API is committed to providing its exchange customers with unmatched service, and the highest level of security available in the 1031 exchange industry. From the customer’s first contact with an API representative, API’s professional exchange counselors, attorneys and accountants work together to meet the customer’s service needs in order to ensure a smooth transaction with no surprises. In the background, API’s management maintains tight financial controls and multi-layered security systems necessary to provide a level of comfort and performance quality relied on by sophisticated investors and corporate America; we call it the “The API Advantage™.”


Attend A Complimentary 1031 Exchange Webinar For CPE Credit

Title: 1031 TAX DEFERRED EXCHANGE ISSUES IN 2015
Presenter: Scott Saunders, Asset Preservation, Inc.

Course Description
This one-hour webinar covers critical IRS time deadlines in delayed exchange, like-kind requirements including creative property variations like easements and personal property exchanges, partnership/LLC scenarios (and how to best structure in advance of a 1031 exchange), reverse and improvement exchanges, related party transactions and how to avoid common pitfalls and other 1031 exchange related issues. This webinar will provide a summary of current developments regarding possible tax reform and the implications for 1031 exchanges and addresses applicable Revenue Rulings, PLR’s and other recent IRS guidance on current issues related to exchanges.

Course Details:
Date: Friday, May 1, 2015
Time: 8:00 a.m. – 9:00 a.m. (PST)
Cost: Free
CPE Credits: 1.0 hour (Accountants & CPAs)

View Details and Registration Info at cpaacademy.org


America’s 13 Hottest U.S. Housing Markets

America’s 13 Hottest U.S. Housing Markets

With a good supply of land and a growing demand for new housing, these five up-and-coming cities will be some of the most lucrative areas for home builders in the next few years. Read More…


1031 Exchange Resources

Open a 1031 ExchangeOpen an Exchange

1031 Exchange Materials1031 Materials

1031 Exchange NewsPast
eNewsletters

1031 Exchange Webinar and PodacatWebinar/Podcast


22
Feb

1031 Exchanges Under Attack! Help Support the Real Estate Industry Now

Paul Ryan (WI), the Chair of the House Ways & Means Committee, has said he intends to pass a tax reform bill through the House prior to the Congressional recess in August. It appears he is considering adopting aspects of Dave Camp’s recent tax reform bill, which included a proposal to completely eliminate Section 1031 tax deferred exchanges. The Senate Finance Committee Chair, Orrin Hatch (UT), is also working on a tax reform bill, and he is looking for input by the end of April. The bottom line is that the real estate investment economy would be negatively affected if 1031 exchanges are eliminated.

If You Benefit from the Ability to Exchange Investment Property, the 1031/Investment Real Estate Industry Needs your Help Now

Like-kind exchanges benefit millions of American investors and businesses every year by encouraging businesses to expand, and by moving dollars within the U.S. economy. Without the tax deferral benefit that 1031 exchanges provide, reinvestment by small- and medium-sized businesses would be inhibited, real estate values would decline, and the U.S. economy would suffer. The repeal of Section 1031 could cause a decline in real estate values as investors are motivated to invest in more liquid, non-real estate investments with faster returns. The repeal of Section 1031 would impose a targeted tax increase on economically sound commercial real estate investment.

Congress Threatens to Eliminate 1031 Exchanges

TAKE ACTION!

Contact your congressional representatives and send a message to Congress that Section 1031 provides a powerful economic tool for stimulating the economy.

Voice your support for 1031 exchanges

VOICE YOUR SUPPORT FOR 1031 EXCHANGES

Also, if you belong to local industry trade organizations connected to real estate investment transactions (i.e. local Commercial Board of Realtors, State Real Estate Association, CCIM, NAIOP, BOMA, SIOR, Real Property and Tax Section of your local Bar Association, Escrow Associations, Real Estate Investment Associations, etc.) and want to receive more information to share with your fellow members, please contact Scott Saunders at scott@apiexchange.com or 888-531-1031. We will provide information on proposals to eliminate 1031 exchanges, and on what you can do to voice your support for Section 1031.


Parking the Relinquished Property (Reverse ‘Exchange First’ Format)

Reverse 1031 Exchange

Asset Preservation has an experienced team in our Commercial Division with many years of expertise and experience handling technical “Parking Arrangements” including reverse exchanges. When a 1031 exchange requires the purchase of a replacement property before the sale of the relinquished property, a reverse exchange is the solution. The IRS released Revenue Procedure 2000-37 which provides a “safe harbor” for exchangers to perform a reverse exchange.

Click on these links to learn more about Reverse Exchanges and Parking the Relinquished Property.
For questions about reverse exchanges, email API’s Reverse Department at reverse@apiexchange.com.


1031 Basics: 45/180 Day Calculator

1031 Basics

From the closing on the sale of the relinquished property, an exchanger must: (1) properly identify potential replacement properties within 45 calendar days (the “Identification Period”) and; (2) close on the replacement property(ies) within 180 calendar days of the transfer of relinquished property sale (the “Exchange Period”). To access a calculator and determine your 45 day Identification Period and 180 day Exchange Period, click here…