Accruit Blog

WSJ analysis on the value of getting greener faster: now add 1031 Exchanges to the mix

If you missed last week's Wall Street Journal feature entitled "Greener and Cheaper," have a look - it could change your business. Authored by Dr. Alan Robinson (Isenberg School of Management, University of Massachusetts) and Dr. Dean Schroeder (College of Business Administration, Valparaiso University), the article examines Subaru of Indiana Automotive Inc., which has established a blueprint for making sustainability work as business practice. They outline a six-step roadmap and conclude that despite what many companies think -- that reducing their environmental impact is a nice idea, but impractical because of the cost -- businesses can go green and lower costs at the same time.

We've talked elsewhere about how businesses in all industries can leverage 1031 Like-Kind Exchanges (LKEs) to help them green their operations. The situation goes something like this:

Federation of Exchange Accommodators Praises Passage of New Exchange Facilitator Regulations in Colorado

  • Rep. Joel Judd applauded for defending the interests of consumers and businesses performing Section 1031 exchanges
  • ..."no client should have reason to fear doing a Like Kind-Exchange."

March 26, 2009

(Denver) Colorado House Bill 09-1254, sponsored by State Representative Joel Judd and State Senator Ted Harvey, has been unanimously passed by the 67th General Assembly of the State of Colorado. This legislation is designed to create consumer protections relating to Section 1031 Like-Kind Exchanges facilitated by Qualified Intermediaries (QI) and Exchange Accommodation Titleholders, otherwise known as Exchange Facilitators.

Lending Issues for 1031 Exchanges

February 2007

Many issues with lending can create unplanned legal or tax consequences and at times may prohibit a mortgage from being funded at closing.

These TIC purchases often require commercial bank lending. For a 100% tax deferred exchange, the exchanger needs to make sure that all of the net proceeds from the sale of their old property are utilized for the TIC purchase. Additionally, any mortgage debt paid off from the sale of their old property must be replaced. Many of the commercial lenders for these TIC purchases require the bank lending be made to a Delaware LLC entity. This creates the requirement for the 1031 exchanger to have a single member LLC for each party of the exchange.

Check out the following lending issues prior to your 1031 exchange transaction:

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