Accruit Blog

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.

Non-Safe Harbor Parking Arrangements for 1031 Exchanges

Accruit performs many safe harbor reverse exchanges (also known as parking arrangements) for taxpayers. The safe harbor transactions fit within the parameters of the safe harbor created in September 2000 by Revenue Procedure 2000-37 and governs those transactions in which the property is parked no longer than 180 days. However, there are instances in which, for a number of reasons, the replacement property must be parked for longer than 180 days. Common examples are those in which the relinquished property will take longer to market and sell than 180 days or in which construction of improvements are required on the replacement property.

Jeremiah Long National Conference on Like-Kind Exchanges 2018

Accruit Client Service Manager Asher Azim joins fellow 1031 professionals at the Jeremiah Long Memorial National Conference on Like-Kind Exchanges for in-depth discussion on topics pertaining to Section 1031, including:

Infographic: 10 Steps of a Reverse Exchange

View the entire 10 Steps of a Reverse Exchange Infographic here.

Accruit, LLC is a national provider of Qualified Intermediary (QI) and Exchange Accommodation Titleholder (EAT) services for simple and complex exchanges. Accruit handles all types of real property like-kind exchanges. Specialized EAT services are provided by Accruit Exchange Accommodation Services LLC.

16th Kratovil Conference on Real Estate Law & Practice

Today, Accruit Associate General Counsel Jordan Born joins scholars, practitioners and other industry professionals at the 16th Kratovil Conference on Real Estate Law & Practice at The John Marshall Law School to discuss potential changes in land use to meet the needs of the commercial real estate industry.

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.

Seller Financing in a 1031 Tax-Deferred Exchange

In a sale of real estate, it’s common for the seller, the taxpayer in a 1031 exchange, to receive money down from the buyer in the sale and to carry a note for the additional sum due. The taxpayer facilitates financing for the buyer in this way to make the transaction happen. Sometimes this arrangement is entered into because both parties wish to close, but the buyer’s conventional financing is taking more time than expected. If the buyer can procure the financing from the institutional lender before the taxpayer closes on their replacement property, the note may simply be substituted for cash from the buyer’s loan. Regardless of the circumstance for seller financing, without further steps, the taxpayer’s use of the value of the note toward the purchase of the replacement property will be taxable.

The Tax Cuts and Jobs Act of 2017 and its Effects on 1031 Exchanges

The Tax Cuts and Jobs Act of 2017 (TCJA) that took effect on January 1, 2018 was a major overhaul of the Internal Revenue Code. Late in 2017, while changes to Section 1031 were being contemplated by Congress, Accruit posted this blog article concerning some of the proposed amendments or even total repeal of Section 1031 being contemplated in Washington, D.C. and the potential adverse effects on tax deferred exchanges.

Tax Relief for Victims of Hurricane Florence

In the event of a federally-declared disaster, the IRS will provide relief to taxpayers in the form of extensions on the 180-day exchange period and 45-day identification period rules. Notice of such relief is posted on this IRS web page:

Tax Relief in Disaster Situations

FEA 2018 Annual Conference

Accruit and other members of the Federation of Exchange Accommodators convene at the FEA 2018 Annual Conference in Kansas City September 12 -14 to discuss issues relevant to like-kind exchanges and the 1031 industry. The theme of this year's conference is "Building for the Future."
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