Steve Chacon

What Are Escrow Holdbacks?

Generally speaking, an escrow holdback, or simply a holdback, is a portion of the purchase price that is not paid to the seller at closing. Instead, it is usually delivered to an escrow agent, the neutral, third party dedicated to holding the funds until specific, agreed-upon events that have been agreed upon by the buyer and seller occur. Escrow holdbacks are common in business mergers and acquisitions and in the purchase of real estate.

Earnest Money versus Down Payment – What’s the Difference?

As a provider of escrow services, Accruit is experienced in facilitating all types and levels of transactions. Whether simple or complex, it’s important to understand some of the terminology used. Two terms common to the sale and purchase of real estate are “earnest money” and “down payment.” In this blog post, I will review the definitions of each of these terms and how they are used in the context of real estate and escrow.

Crowdfunding Part II: Regulatory Review

In Crowdfunding Part I, we covered the basics of crowdfunding, including the definitions of common types of crowdfunding, including equity, debt, donation and reward crowdfunding structures. In this installment, we’ll explore some additional regulatory detail, focusing on equity crowdfunding and Title III of the Jumpstart Our Business Startups Act (JOBS Act) and Regulation Crowdfunding.

Crowdfunding, Part I: Common Types of Crowdfunding

As a form of crowdsourcing and alternative finance, crowdfunding is implemented to encourage crowds through online collaboration to efficiently invest in projects that interest them. It functions in several different ways, with multiple factors influencing the process. In the first entry of this series on crowdfunding, we’ll explore the basics of such fundraising efforts as well as the variety of crowdfunding methods available.

1031 Exchanges + Tax Reform = Permanent Tax Reduction

Comprehensive tax reform is here, and Congress is moving the legislative text through its final stages. Final voting is expected before the end of the year, with the new legislation to become effective for 2018. With Section 1031 retained for investment and business use real estate, but repealed for personal property (equipment, autos, machinery, etc), the new legislation presents a unique opportunity for exchangers to permanently reduce tax liabilities. There’s a very short window. If the new tax legislation passes, Section 1031 exchanges of personal property will only be allowed on sales that occur through December 31, 2017.

Tax Code Sections 1031 and 1033: What's the Difference?

United States tax code sections 1031 and 1033 are sometimes confused by taxpayers as they are similar, not only in section number, but in that they were both created to provide for tax deferral of depreciation recapture and capital gains on the sale of property, but that's where their similarity ends. Sections 1031 and 1033 differ materially in:

Using Escrow in a Private Placement Memorandum

A private placement memorandum (PPM) or offering memorandum (OM) is the document used in a private offering of securities to a small number of uniquely qualified investors. Also known as an offering circular (OC), a PPM is typically used by a company to raise capital and avoid using debt or a traditional public offering. A PPM can be advantageous to an issuing business in that there is no registration required by the Securities and Exchange Commission as there is for a public offering.

Reduce Tax Exposure on Heavy Equipment Sales

For owners of heavy equipment, replacing or upgrading is a necessity. Newer, faster, more powerful machinery helps expand your capabilities and increase your operating efficiencies, and it allows your crews to operate more safely. For a lot of businesses, this means a trip to your preferred equipment dealer to trade in your old iron for new iron. However, if you’re not exploring all of your options, you could be missing out on the chance to maximize your buying power by reducing your exposure to the taxes associated with such transactions.

Changing Tax Laws Create Unique Opportunities

The results of the recent election cycle will have a profound effect on the United States income tax system. With Republican control over both chambers of Congress and the Oval Office, we can expect bold moves in tax reform—bold, but not unexpected. In anticipation of a reform-friendly environment, the House Republicans, prior to the November elections, released an outline for future tax reform. Released on June 24, 2016 and titled, “A Better Way, Our Vision for a Confident America,” the document is the foundation for the Republican’s tax reform efforts. The outline is also referred to as the “House Republican Blueprint” (HRB), and while only 35 pages in length, it seeks to begin a “conversation about how to fix our broken tax code.”

Section 1031 - Misstatements and Misleading Information

During his campaign, President-elect Trump was criticized for the non-release of income tax returns. The information available is limited to his own statements and the release of three pages from his 1995 returns of income from New York and New Jersey. These pages reveal what amounts to a $900M loss. Unfortunately, these documents are driving misstatements and generating misleading information related to Section 1031 Like-Kind Exchanges – one of the real estate industry’s most popular tax strategies

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