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10
Aug

Combine Reverse and Delayed Exchange for 360 Days

Combine Reverse & Delayed Exchange for 360 Days

Tax-deferred exchanges have been part of the U.S. Tax Code since 1921. Since that time, the government has approved certain methods to structure exchange transactions that are so called “safe harbors.” For example, in 1991 the U.S. Treasury issued final regulations that provided important guidance on the structure of delayed exchanges, including guidance regarding the 45-day identification period and 180-day exchange period set forth in Section 1031 and other procedural requirements. On September 15, 2000, the Internal Revenue Service released Revenue Procedure 2000-37 that provided guidelines for structuring reverse exchanges (a transaction in which replacement property is acquired by an accommodating party before the sale of the relinquished property, and held as replacement property to complete the exchange).

A replacement property may be acquired and held (sometimes called “parked”) by the accommodating party for up to 180 calendar days. The IRS provided guidance (See ILM 200836024) approving the combination of a reverse parking arrangement exchange and a forward delayed exchange resulting in two sequential 180-day exchange periods associated with one exchange transaction. Read more…

Customize It

1031 Basics: Identification Rules

1031 Basics

A taxpayer has until midnight of the 45th calendar day following the sale of the relinquished property to properly identify the replacement property. To learn about the three different ways to identify replacement property, click on Identification Rules.


The Real Estate Side of Oil and Gas Royalties

Whenever we hear the word “real estate” what comes to mind is the traditional categories of property we see and live in on a daily basis. There is farmland, ranchland, raw land, brick and mortar, commercial properties, multi-family structures, and our homestead, all of which affect our daily lives in a positive manner. These types of real property provide a variety of financial gain by generating cash flow to the owner of these assets. Outside of our homestead, most real estate properties have an investment appeal that attracts all of us to one or more categories of real property assets. There is an additional benefit to owning one or more categories of property assets: the appreciation in value most real estate provides.

There is another category of real estate and real property not very well known by many of us and not readily available to everyone. However, this category of real estate provides the same benefits as the traditional real estate we all understand. Read More…

Alfred C. Teran, Patriot Energy, is associated with Patriot Energy and is not an employee or agent of Asset Preservation, Inc. Any views or opinions presented in Mr. Teran’s article are solely those of the author and do not necessarily represent those of Asset Preservation, Inc. A proper evaluation of the benefits and risks associated with a particular 1031 exchange transaction often requires advice from a competent tax and/or legal advisor familiar with your specific transaction, objectives, and the relevant facts. Asset Preservation, Inc., strongly urges you to involve your tax and/or legal advisor (or to seek such advice) in any real estate or business-related transaction.


How Healthy Is Your City’s Housing Market?

How Healthy Is Your City's Housing Market?

Boston has happy home buyers, while Las Vegas lacks reliable residents, according to a new study. WalletHub, a consumer finance website, looked at how the housing recovery affected consumers across the country. Having the right type of financing could set home buyers up for success — and the risky kind could set families up for failure down the road, said WalletHub spokeswoman Jill Gonzalez.

So, WalletHub ranked 25 metropolitan areas on homeowners’ “financial freedom,” using data from the Census Bureau’s American Housing Survey. Read More…


Short Supply of Available Units Is Pushing Up Rents

Labor Department data show rents have already climbed 3.5 percent in the 12 months through June, matching the biggest jump since 2008. That far outstrips the increase in consumer prices, excluding food and fuel, which was 1.8 percent in the same period. Read More…


IRS Provides Tax Relief for Disaster Situations

IRS Provides Tax Relief for Disaster Situations

Tax Relief for Victims of Severe Storms, Tornadoes, Straight-line Winds and Flooding in Texas which occurred beginning May 4, 2015, may qualify for tax relief from the Internal Revenue Service.

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 on all disaster areas, Visit the IRS: Tax Relief in Disaster Situations.


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 restructuring in advance of a 1031 exchange), reverse and improvement exchanges; related party transactions; 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, September 9, 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


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


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


1031 Exchange Resources

Open a 1031 ExchangeOpen an Exchange

1031 Exchange Materials1031 Materials

1031 Exchange NewsPast
eNewsletters

1031 Exchange Webinar and PodacatWebinar/Podcast


17
Jun

Options for Partnership Exchanges and Other 1031 News

Partnerships and 1031 Exchanges

Available Options for Partners and Partnerships (and LLCs)

Like any taxpayer, a partnership (and a limited liability company taxed as a partnership, generally referred to herein as a “partnership”) can engage in a like-kind exchange under IRC Section 1031 to defer paying tax on capital gains. Difficulties can arise, however, when the individual partners desire different outcomes with regard to the sale of property by the partnership. Some partners may wish for the partnership to stay together and do an exchange; others may want to do their own exchange with their portion of the property; still others may wish to receive cash and simply pay the tax. What alternatives are available to the partners? Read more…

Customize It

New CA State Board of Equalization Board Decision
May be Favorable for Future Drop & Swap and Swap & Drops

The California State Board of Equalization (Board) recently issued a decision in an important Section 1031 exchange case. The Franchise Tax Board (FTB) has been very aggressive in auditing Section 1031 exchanges and disallowing exchanges involving a “drop and swap” or a “swap and drop.” The new Board decision may temper the FTB’s aggressive positions which are not consistent with established federal case law in the 1031 exchange area. Read More…


Exchange Facilitator Does Not Beat Missouri Use Tax On Learjet

Exchange Facilitator Does Not Beat Missouri Use Tax On Learjet

Although the like-kind exchange is used heavily in real estate, there are other applications. Section 1031 applies to most property used in a trade or business or held for the production of income. One example is corporate jets. Even if they do not appreciate, they depreciate much less than the cost recovery deductions. So, selling a jet can cause significant depreciation gain recognition.

The like-kind exchange can be great for deferring tax on this gain. But what about sales and use tax? KCC Contractor, Inc. and John Q. Hammons Industries went before the Administrative Hearing Commission of the State of Missouri to address this issue. What they learned was that a transaction which qualifies for tax deferral under federal tax principles does not necessarily avoid sales and use tax. Read More…


IRS Provides Tax Relief for Disaster Situations

IRS Provides Tax Relief for Disaster Situations

Tax Relief for Victims of Severe Storms, Tornadoes, Straight-line Winds and Flooding in Texas which occurred beginning May 4, 2015, may qualify for tax relief from the Internal Revenue Service.

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 on all disaster areas, Visit the IRS: Tax Relief in Disaster Situations.


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.  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™.”


The 20 Hottest U.S. Real Estate Markets in May 2015

The 20 Hottest U.S. Real Estate Markets in May 2015

The housing market is chugging ahead, with even higher home prices and more buyer activity—and in May, we’re seeing more than the ordinary seasonal uptick. 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 restructuring in advance of a 1031 exchange), reverse and improvement exchanges; related party transactions; 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, August 5, 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


Pack It Up, Pack It In: Where Is America Growing?

Pack It Up, Pack It In: Where Is America Growing?

If you are looking for areas where U.S. population is rising significantly, just look to the South or West. Communities in those two regions dominate recent population growth trends, with a few exceptions. Read more…


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


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


1031 Exchange Resources

Open a 1031 ExchangeOpen an Exchange

1031 Exchange Materials1031 Materials

1031 Exchange NewsPast
eNewsletters

1031 Exchange Webinar and PodacatWebinar/Podcast


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