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Understanding a 1031 Tax Deferred Exchange of Real Estate: Part III

Accruit's clients have significantly increased their cash flow utilizing 1031 Like-Kind Exchanges for both real estate and personal property. We hope you enjoy Part III, which concludes our series on Understanding Tax Deferred Exchanges of Real Estate.

1st Quarter 2013 Newsletter - Focusing on Like-Kind Exchanges in 2013

In this Issue:

- President's Pen
- Industry Spotlight: More Trucking Companies Joining the 1031 LKE Cash Flow Convoy
- Accruit News: Melissa Salazar promoted to VP of Finance
- JBR Corner: Like-Kind Exchange Update on IRS Activity - Dual Use Property Issues
- North Star Deferred Exchange LLC: Understanding a 1031 Tax Deferred Exchange of Real Estate
- Top 5 List: Snowfall
- What Does the Expiration of Temporary Unlimited FDIC Insurance Coverage for Noninterest-Bearing Transaction Accounts Mean for You?
- Accruit in Action

October 2012 Newsletter - Effective Cash Flow Strategies Are More Critical Than Ever

In this Issue:

- President's Pen
- Reverse Like-Kind Exchanges
- North Star Deferred Exchange LLC: Understanding Tax Deferred Exchanges of Real Estate
- Top 5 List: All-Time Winning NFL Franchises
- Accruit in Action

June 2012 Newsletter - Ready or Not, Summer is Here

In this Issue:

- President's Pen
- JBR Corner
- Top 5 of the Month
- Industry Spotlight
- Accruit News

Accruit and PwC form Joint Business Relationship to better serve 1031 exchange market

At Accruit, we've been working for some time on fostering a strategic relationship that will provide all of our 1031 exchange program clients with access to a bundled like-kind exchange (LKE) service solution that will improve efficiency and service, and the news is now official: I'm pleased to announce that Accruit has agreed to enter a joint business relationship (JBR) with PricewaterhouseCoopers Like-Kind Exchange Services (PwC).*

This is truly great news for all of us, and I'd like to begin by explaining what it means for everyone, and in particular, what it means for your business.

New Hampshire enacts 1031 exchange reform bill

The Federation of Exchange Accommodators (FEA) has received confirmation that the New Hampshire Governor John Lynch has signed SB 483 into law. According to the FEA:

The new law amends prior law, which deprived taxpayers of Section 1031 tax deferral on a state level if they purchased replacement property in the name of a new entity, notwithstanding that the acquiring entity was a disregarded entity. The typical situation would be that in which a taxpayer was required by a lender or TIC sponsor to acquire a replacement property in the name of a new single member LLC. The State of New Hampshire began disallowing exchange treatment on those transactions in 2008 and began to audit previously closed transactions as far back as 2004, without notice either to taxpayers or to the professionals in the industry.

Explaining 1031 exchanges to partners, customers, colleagues and friends

All of us here at Accruit are used to it. A friend, family member, acquaintance or somebody we just met at a party says "what does your company do?" The truth is that not a lot of people know much, if anything, about 1031 like-kind exchanges (LKEs), and it's not always the easiest thing to explain. The more they know about finance and tax issues, the easier it is, but even then it can be tricky communicating the code in a way that's readily understood.

IRS issues 45 and 180-day extensions for disaster areas in Mississippi, Tennessee and Alabama

This just arrived via e-mail from the FEA:

The IRS has issued extension Notices for the following disaster areas (the Covered Disaster Areas) for storms beginning on the disaster date in bold:

Mississippi (April 23): Attala, Choctaw, Holmes, Monroe, Oktibbeha, Union, Warren and Yazoo West Virginia: Fayette, Greenbrier, Kanawha, Mercer and Raleigh

Alabama (April 24): DeKalb, Marshall and Walker

Tennessee (April 30): Benton, Carroll, Cheatham, Chester, Clay, Crockett, Davidson, Decatur, DeKalb, Dickson, Dyer, Fayette, Gibson, Hardeman, Hardin, Haywood, Henderson, Hickman, Houston, Humphreys, Jackson, Lauderdale, Lawrence, Lewis, Macon, Madison, Maury, Montgomery, Obion, Robertson, Rutherford, Smith, Stewart, Sumner, Trousdale, Wayne, Williamson and Wilson

Like-kind exchange insight: when can exchangers get their proceeds back?

Exchangers frequently inquire about when they may receive all, or part of their exchange proceeds back. It is a question I have been asked countless times, and in certain circumstances giving the right answer can be difficult. We're talking, after all, about the proceeds from the exchanger's sale, and sometimes the need for their return is pressing. Regardless of the need, though, there are very rigid regulations regarding when qualified intermediaries (QIs) can release a client's exchange proceeds. Those same regulations make no provision for how badly those funds may be needed for purposes outside a properly structured like-kind exchange (LKE).

FEA alert: 45 and 180-day extensions for disaster areas in New Jersey and West Virginia

The FEA has issued an important alert for businesses operating in areas of New Jersey and West Virginia affected by recent heavy storms.

The IRS has issued extension Notices for the following disaster areas (the Covered Disaster Areas) for storms beginning on March 12th (disaster dates are in bold) :

New Jersey: Atlantic, Bergen, Cape May, Essex, Gloucester, Mercer, Middlesex, Monmouth, Morris, Passaic, Somerset, and Union

West Virginia: Fayette, Greenbrier, Kanawha, Mercer and Raleigh

[Note that the IRS may add additional areas later as FEMA adds them. If you are near the Covered Disaster Area, you should check the disaster announcement website for updates. The FEA will not issue announcements if more areas are added.]

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