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.
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:
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.
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.
In a sale of real estate, it’s common for 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.
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:
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."
Accruit EVP Max Hansen charts the evolution and passage of the 2017 Tax Reform Act and its impact on property exchanges under Section 1031 of the
Internal Revenue Code in a program conducted by Northwest Farm Credit Services for its loan officers at Fairmont Hot Springs Resort near Anaconda, Montana. Max will also discuss the current state of real property exchanges and some of the recurrent issues faced by ag lenders and their customers.