AED Washington Fly-In 2017, April 4-6, 2017

Earlier this month, as part of Accruit's ongoing advocacy efforts, I attended the Associated Equipment Distributors (AED) 2017 Washington Fly-In, an opportunity for AED members to actively participate in the legislative process on important issues. Tax reform is one such issue, along with the preservation of Section 1031 like-kind exchanges and the benefit they represent to the industry and the economy.

Our fly-in agenda was packed with meetings with legislators, all of whom play an influential role in the direction that tax...

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...

Qualified Intermediaries Celebrate 25 Years of Section 1031 Like-Kind Exchange Compliance and Taxpayer Protections

Professional QIs Are Central to 1031 Exchanges and Help a Wide Variety of Asset Owners

Las Vegas, Nevada (September 15, 2016)

The U.S. Treasury rules giving rise to the like-kind exchange “Qualified Intermediary” turn 25 this year. Established by Treasury safe harbor regulations in 1991, professional Qualified Intermediaries (QIs) promote compliance with the law and make the...

Like-Kind Exchange Letters Sent to Clinton, Trump Campaigns

The Federation of Exchange Accommodators (FEA) is among 26 groups that signed letters sent to the Hillary Clinton and Donald Trump presidential campaigns last week. The letters explain the benefit of real estate exchanges for small businesses, farmers, ranchers, and for use in land conservation. The timing of these letters are important, as both campaigns are developing and revising tax plans. 

A revised Clinton tax reform proposal released September 22, 2016 mentions limitation of gain deferral under Section 1031 exchanges, expected to be similar to the Administration's FY2017 Budget proposal.

Our goal is to dispel common myths and to inform the candidates and their policy advisors as the tax reform proposals from both candidates continue to evolve and change.

The letters make some important points about ...

On Capitol Hill, Recess Doesn’t Mean Play Time

While congressmen and women are out campaigning, congressional staff continue to work in the area of tax reform.  As part of Accruit’s continued advocacy efforts on behalf of our real estate and personal property LKE clients and as co-chair of the Federation of Exchange Accommodators Government Affairs Committee, I’ve made six trips to Capitol Hill this year to meet with congressional staff, specifically targeting members of the House Ways & Means Committee and Senate Finance Committee, both of which determine U.S. tax policy.

House Ways & Means Draft Blueprint for Tax Reform

Earlier this year, House Ways & Means Chairman Kevin Brady, (R-TX) introduced the draft blueprint for comments and, learning from the experiences of past Chairman Dave Camp, is soliciting input on the blueprint from members of Congress, the business community, and other interested groups prior to voting out of committee.   I’d like to highlight several points in the draft House Blueprint that could impact your business:

100% Immediate Expensing

Accelerating write-offs of capital assets is not...

House Agriculture Committee Advocates on Behalf of Section 1031

In June, two members of the House Agriculture Committee, Representative Bob Gibbs (R-OH) and Representative David Rouzer (R-NC), and 17 other congressmen and congresswomen wrote a letter to House Ways and Means Committee Chairman Kevin Brady (R-TX) urging the committee to help preserve 1031 like-kind exchanges. The letter, attached below, called Section 1031 "integral to [its] operations and ongoing vitality."

"The provision serves as an important tool for providing flexibility and increased economic efficiencies for the agricultural community. Section 1031 permits a


Tax Reform Discussion Draft Released to Simplify Depreciation

In April, Senator Ron Wyden (D-OR) released a cost recovery reform and simplification discussion draft that would repeal our current depreciation method for assets used in business.  Currently, deprecation is calculated under MACRS (Modified Accelerated Cost Recovery System).  This proposal would repeal MACRS and replace the schedules with six individual pooling methods into which similar tax life assets are grouped together (pooled) and depreciated as a group of assets.  Accruit, along with several of our association partners, were given an overview of the plan and asked for feedback prior to the release.

At a high level, pooling doesn’t sound like a bad idea; there are six buckets and an inclusive structure for ...

Letter from the 1031 Coalition to the Senate Finance Committee

Accruit was pleased to contribute to the following letter submitted to the Senate Finance Committee yesterday on behalf of the 1031 Like-Kind Exchange Coalition. We are seeing great strides in our efforts with Congress as we continue to educate members on the benefits that 1031 like-kind exchanges bring to the economy.

May 10, 2016

The Honorable Orrin G. Hatch
Senate Committee on Finance
219 Dirksen Senate Office Building
Washington, D.C. 20510

The Honorable Ronald L. Wyden
Ranking Member
Senate Committee on Finance
219 Dirksen Senate Office Building
Washington, D.C. 20510

Dear Chairman Hatch and Ranking Member Wyden:

As the Senate...

California Code of Regulations Proposal Unfeasible for Like-Kind Exchanges

A recent California Code of Regulations proposal considers requiring corporate taxpayers to use an historical apportionment formula to trace assets through numerous layers of like-kind exchanges to determine how to apportion gains from the eventual sale of a replacement asset that might be a decade (or more) removed from the original sale of a relinquished asset.  The attached letter from the leaders of the American Financial Services Association, the Equipment Leasing and Finance Association, and the...

1031s Build America

Last week, I attended the Federation of Exchange Accommodators’ (FEA) annual conference, where it really struck home how impactful tax policy is for America.

The FEA is our nation’s only recognized association dedicated to education, proper conduct, and legislative representation for qualified intermediaries servicing IRC Section 1031 of the tax code, and as a sitting board member for over seven years, I am acutely aware of our membership’s activity levels.  Activity levels that, in many ways, mirror our broader economy. 

From 2009-2013, attendance was at an all-time low.  Colleagues whose businesses prospered years earlier were experiencing a dramatic slowing in the number of 1031 transactions they facilitated. Taxpayers’ wealth in America was being depleted; asset values dropped to a fraction of past highs; and the need for deferring tax gains seemed less probable than a good, long rain in California.

Fast Forward to 2015

FEA attendance is not a leading economic indicator, but it very well could be.  Attendance by qualified intermediaries in the last two years is up 20% year over year.  Hotel...


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