Accruit Blog

Land Title Association of Colorado (LTAC) Convention

On September 6-8, Accruit Vice President Steve Chacon will attend the annual convention of the Land Title Association of Colorado (LTAC), a partnership of professionals working to bring Colorado title industry issues to the forefront. The convention takes place in Beaver Creek, where Steve will be available to LTAC members with information on a variety of like-kind exchange and escrow services.

SIM Women Summer Conference

On August 25th, Accruit President and COO Karen Kemerling will be attending the SIM Women Colorado's summer conference to provide support and mentorship for women in technology. "Technology is my passion, and I believe it is our future. I am very excited to encourage and support women to take on technical roles where they can provide much needed diversity leading to better creative problem-solving and innovation, which every business needs."

Are like-kind exchanges still advisable with tax reform on the horizon?

Often, when learning of the tax deferral benefits of like-kind exchanges for the first time, sellers are surprised. It seems too good to be true, but it is. Capital gains taxes, recapture of depreciation, state taxes and a health care tax can all be deferred in full. But given the current climate of impending tax reform, is it still advisable?

Like-Kind Exchange News Round-Up, June 29 – July 11

What brings farmers, small business owners, and legislators together to speak out about tax reform? Like-kind exchanges do.

In this week's round-up of 1031 news, Judd Vande Voorte, a fifth generation farmer, calls like-kind exchanges "a continuous circle of economic stimulus and liquidity" and cites a recent study showing that like-kind exchange repeal would shrink overall U.S. GDP by $61 billion to $131 billion over the next ten years. Ben Mattlin, in his Financial Advisor article, quotes one estimate that shows like-kind exchange repeal could raise $41 billion in tax revenue within 10 years but is also quick to point out the long-term negative consequences to the U.S. economy. Carrie Roider, CEO of Erb Equipment, a John Deere distributor, calls like-kind exchanges "a win-win for the country." And don't miss Representative Steve Stivers' support of like-kind exchanges in The Hill.

Representative Steve Stivers Calls for Preservation of Like-Kind Exchanges

In an op-ed in The Hill, Representative Steve Stivers (R-Ohio) called for the preservation of 1031 like-kind exchanges. Stivers, a member of the Financial Services Committee, called Section 1031 an "important tax benefit," citing the tax provision's value to the community and the economy and stating the importance that it be kept out of the crosshairs of tax reform.

What is an escrow and how does it benefit me?

Escrow is an arrangement in which transacting parties retain a third party, an escrow agent or escrowee, whose job is to safeguard funds and assets according to conditions that have been agreed upon in advance. Such an arrangement protects the transacting parties in the deal, providing that neither has an unfair advantage and that both are earnest about the deal.

Like-Kind Exchange News Round-Up, June 18 – June 24

Last week we heard a chorus of voices from around the web urging the preservation of like-kind exchanges in any forthcoming tax reform. Graniterock CFO Steve Snodgrass characterized the unprecedented cross-industry support this way: "Rarely do the interests of small businesses owners, construction equipment intensive businesses and a broad range of local entrepreneurs agree with almost a century of federal income tax policy — especially when it results in billions of dollars in taxes being paid. But fortunately for the economy, they do."

Video: 1031 Like-Kind Exchange with Seller Financing

Is it possible for a property seller to finance the buyer when completing a like-kind exchange? The answer is yes but only under certain conditions. Such factors include the time period of the seller's loan, the potential of a cash loan from the seller to the buyer, and the use of a qualified intermediary as the loan recipient.

Rules for Real Estate and Personal Property Exchanges are not always of Like-Kind

Differences between Real & Personal Property Exchanges

The 1991 Treasury Department regulations set forth detailed guidelines for tax deferred exchanges of real property and personal property. Prior to that time, exchanges could be done but very little guidance was available to make sure they were done correctly. This set of rules and regulations covered like-kind exchanges of both real and personal property. However, these two types of exchange property are not covered the same way. Below, I’ll summarize some of the differences between real property and personal property exchanges.

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.

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