1031 News Blog

FEA 2017 Mid-Year Meeting and Hill Visit, February 27 - March 1, 2017

Tax reform is on the horizon, but little is known about what shape that will take or when it will take place. Few of our elected officials have ever run a business, so it is our responsibility to educate them on how tax reform may impact American businesses and the economy as a whole. Like-kind exchanges benefit millions of American investors and businesses every year, encourage business expansion and help keep dollars moving in the U.S. economy.

FEA President, Steve...

Is Early Release of Exchange Funds Possible Under 1031 Exchange Rules?

Tax Reform: 10 Talking Points in Favor of Preserving Like-Kind Exchanges

Early April is the expected date for committee discussions on a preliminary tax reform bill. Or is it May? Perhaps before the August recess? 

That was the comical consensus I received after attending 17 meetings in Washington D.C. last week. Lately, when monitoring the news out of our nation’s capital, we’ve all become a bit skeptical of what defines “good reporting.”  The proposed House tax plan labeled A Better Way is reported to have the full support of Republican lawmakers. However, some closed-door conversations with members of Congress last week provided me with an entirely different story. 

Is it Really A Better Way?

The only real consensus is that A Better Way has a lot of unanswered questions for U.S. business owners. This 35-page document seems to gloss over the fact that business owners want more out of tax reform than simplicity and a lower tax rate.  In order to grow, American business needs the ability to do things like expand operations, hire more people, acquire equipment, secure land and facilities, leverage...

Changing Tax Laws Create Unique Opportunities

The results of the recent election cycle will have a profound effect on the United States income tax system.  With Republican control over both chambers of Congress and the Oval Office, we can expect bold moves in tax reform—bold, but not unexpected.  In anticipation of a reform-friendly environment, the House Republicans, prior to the November elections, released an outline for future tax reform.  Released on June 24, 2016 and titled, “A Better Way, Our Vision for a Confident America,” the document is the foundation for the Republican’s tax reform efforts.  The outline is also referred to as the “House Republican Blueprint” (HRB), and while only 35 pages in length, it seeks to begin a “conversation about how to fix our broken tax code.”

While few can accurately predict the outcomes of 2017 tax reform, the consensus view is that corporate tax rates will be reduced from current levels. While the timelines and the degree of these reductions are unknown, savvy CFOs are recognizing opportunity in the face of this uncertainty. Many tax advisors are looking...

Accruit at AED Summit and Condex 2017 - Chicago, IL

January 10-13, 2017

AED preferred providers of 1031 exchange services, Accruit and PwC partner to provide over 75 AED members with 1031 ...

Avoid Boot from Rent and Security Deposits in a 1031 Exchange

Taxable Boot Related to Prepaid Rent and Security Deposits

In a standard closing (not involving a 1031 exchange), it is typical for the prepaid rent and security deposits being held by the seller to be treated as a credit to the buyer at closing.  In that context, the net amount paid to the seller for the property at closing is simply reduced.  However, this same practice in connection with a sale of ...

Keep Your BIG (Built-In Gains) from Getting Small

Converting a C Corporation to an S Corporation

Thinking about changing your corporate structure from a C corporation to a subchapter S corporation?  S corporations, partnerships, and certain LLCs are considered pass-through entities, which means they "pass through" various types of taxable income: interest, dividends, deductions, and credits to the shareholders, partners, or members responsible for paying tax. This avoids the double taxation associated with C corporations that pay entity-level taxes and then distribute dividends that become subject to individual taxes.

What is Built-in Gains Tax?

With all of the tax advantages provided to S corporations, many companies are making the move.  However, there are some pitfalls.  One of these is the tax recognition of built-in gains (BIG). Generally, BIG tax is triggered when existing assets are sold during the ...

Section 1031 - Misstatements and Misleading Information

During his campaign, President-elect Trump was criticized for the non-release of income tax returns.  The information available is limited to his own statements and the release of three pages from his 1995 returns of income from New York and New Jersey.  These pages reveal what amounts to a $900M loss.  Unfortunately, these documents are driving misstatements and generating misleading information related to Section 1031 Like-Kind Exchanges – one of the real estate industry’s most popular tax strategies

Misstatements and Misleading Information about...

Accruit Advances Strategy with the Addition of Marketing and Inside Sales Director

Accruit, LLC, the nation’s leading provider of qualified intermediary (QI) services and 1031 like-kind exchange (LKE) program solutions, is pleased to announce the addition of Ted Jolly as Director of Marketing and...

The Same Taxpayer Requirement in a 1031 Tax Deferred Exchange

What is the Same Taxpayer Rule in a 1031 Like-Kind Exchange?

In a 1031 exchange, the taxpayer who owns the relinquished property must be the same taxpayer who takes ownership of the ...

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