45 and 180 Day Extensions for Washington and Oregon Counties

45 and 180 Day Extensions for Washington and Oregon Counties

Posted by Strategic Property Exchanges on Dec 14, 2007

45 and 180 Day Extensions for Lake County, Indiana

45 and 180 Day Extension for Lake County, Indiana 

Posted by Strategic Property Exchanges on Dec 07, 2007

Section 1031 Exchanges Capture Value in the Purchase and Sale of Businesses

(The following is an excerpt from our 1031 Advisor newsletter located here )

• Tax Deferral Benefits of Section 1031 Exchanges: Expanded Horizons
• The Issue: A variety of Asset Classifications
• The Benefits of Section 1031 Exchange to the Seller-Business Owner
• The Opportunities

Posted by Strategic Property Exchanges on Dec 04, 2007

Pending Legislative Changes for Section 1031 Exchanges

(The following is an excerpt from our 1031 Advisor newsletter located here )

• Pending Legislative Change #1:  (IMPACT:  Buyers and Sellers of Farm Real Estate)  Contained within the Heartland, Habitat, Harvest and Horticulture Act of 2007,  the bill disallows Section 1031 treatment for certain unimproved real estate.
• Pending Legislative Change #2:  (IMPACT:  Buyers and Sellers of Collectibles)          Senate Finance Committee is currently considering the elimination of Section 1031 treatment for the sale of collectibles.
• Pending Legislative Change #3:  (IMPACT:  Buyers and Sellers of Property) Readers of my August 2007 newsletter are familiar with the benefits of Section 121 combined with Section 1031. Section 121(a) provides that gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer's principal residence for periods aggregating 2 years [defined to mean 24 months or 730 days as well as 2 calendar years] or more. Congress is slated to curb this generous provision for sales after 2007 and allow more of the gains to be taxable.
• Pending Legislative Change #4:  (IMPACT:  All Taxpayers)  Codification of the economic substance doctrine.

Posted by Strategic Property Exchanges on Nov 06, 2007

Like-Kind Exchanges Require Additional Oversight

(The following is an excerpt from our 1031 Advisor newsletter located here )

• Audit Report of the Treasury Inspector General for Tax Administration to the IRS: Like-Kind Exchanges Require Additional Oversight [and Tax Audits] to Ensure Taxpayer Compliance.   On Monday, September 17, 2007, the Treasury Inspector General for Tax Administration released an audit report. The audit was conducted from November 2006 to May 2007.

Posted by Strategic Property Exchanges on Oct 11, 2007

PLR 200732012: Exchanges with Disregarded Entities

(The following is an excerpt from our 1031 Advisor newsletter located here )

• PLR 200732012: Exchanges with Disregarded Entities. The IRS ruled that Like Kind Exchange transactions by disregarded LLCs will be attributed to their owner, including the sale of relinquished properties and the acquisition of the replacement properties.
• TD 9327, 72 Fed. Reg. 44338 (8/7/07): IRS issued final rules addressing corporate estimated tax payments under Section 6655. The effective dates for the final §6655 regulations were effective on August 7, 2007, and apply to tax years beginning after September 6, 2007.
  

Posted by Strategic Property Exchanges on Oct 11, 2007

IRS approved an arrangement between related parties

(The following is an excerpt from our 1031 Advisor newsletter located here )

• In PLR 2000730002, which was released on July 27, 2007, the IRS approved an arrangement between related parties and their exchange of different properties.  Under Section 1031(f)(2)(C), exchanges of undivided interests between related parties in different properties, which result in each taxpayer holding either an entire interest in a single property or a larger undivided interest in any of such properties, is NOT subject to the two year holding period.
• In PLR 200728008, the IRS reaffirmed that a sale to a related party is NOT subject to the two year holding rule. In this case, an exchanger sold two relinquished properties via qualified intermediaries to a related party in two separate reverse exchanges. 
• In PLR 200728037 the IRS ruled that a like-kind exchange by an UPREIT, in which no boot was triggered, would not be treated as a sale of property. In addition, the IRS ruled that the relinquished property would not be treated as property sold for purposes of the seven property safe harbor in section 857(b)(6)(D)(iv).    This ruling was first articulated in PLR 200712013 and is virtually identical to PLR 200701008 also issued earlier this year. 
• Rep. Adrian Smith of Nebraska (R) introduced HR 3039 in July, 2007.  This legislation would double the time period for the identification of potential replacement properties and the completion of a like-kind exchange, from 45 to 90 days and 180 to 360 days respectively.

Posted by Strategic Property Exchanges on Oct 11, 2007

Nevada expands licensing and regulation of Qualified Intermediaries

(The following is an excerpt from our 1031 Advisor newsletter located here )

• Nevada expands licensing and regulation of Qualified Intermediaries in the wake of SouthWest Exchange collapse. Senate Bill 476 becomes effective July 1, 2007.
• Idaho expands licensing and regulation of Qualified Intermediaries by requiring Errors and Omission insurance, as well as fiduciary insurance.
• Associated Press  June 18, 2007.  Bankruptcy Judge Martin Green of the US Bankruptcy Court in Manhattan denied 1031 investors' request to appoint a trustee or convert the case to a Chapter 7 liquidation, in the case of 1031 Tax Group and its 16 affiliates.  Canadian born Mr. Okum has ceded all management control and has surrendered his passport to his lawyer.

• Private Letter Ruling 200724007.  The IRS ruled that a Qualified Intermediary, in the form of a national partnership,  widely owned by real estate brokers, were able to share in the ownership profits, commissions, finders fees,  and exchange fee income earned from their own clients, despite the fact they are disqualified persons,  because no one disqualified realtor will be able to own more than 5% of the Qualified Intermediary.

Posted by Strategic Property Exchanges on Oct 11, 2007

Current IRS Announcements and Cases

(The following is an excerpt from our 1031 Advisor newsletter located here )

• The IRS now recognizes television network affiliation agreements as like-kind property. FAA 20072101F
• Exchange of one Vacation Home for another did not qualify for Section 1031 Treatments, Moore v. Comm T.C. Memo 2007-134 (5/30/07)
• In a parking transaction, relinquishing property through qualified intermediary before expiration of 45 days from date replacement property is parked satisfies identification requirement. PLR 200718028
• Section 1031(f)will not apply to trigger gain recognition in related party reverse like-kind exchange using qualified intermediary where related party expects to dispose of relinquished property within two years of acquisition. PLR 200712013

Posted by Administrator on Apr 24, 2007

How do I know which Qualified Intermediary to Choose?

Tax opinions are important in Section 1031 exchanges, since they guarantee to the IRS that the Exchange is a valid, iron-clad 1031 Exchange.  The IRS states in Circular 230 that “only attorneys with a knowledge of all areas of federal tax law may issue a tax opinion” as to whether a tax transaction qualifies. This is the case with Section 1031 Exchanges. Our tax opinions protect you from malpractice claims and your client from the IRS. Rely on Strategic Property Exchanges, LLC and Stephen L. Robison, Esq. for all your 1031 Exchanges.   [ read full article ]

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Posted by Administrator on Apr 21, 2007