As part of Accruit’s ongoing efforts to promote 1031 Like-Kind Exchanges (LKE), we were busy as ever at the annual Federation of Exchange Same as intermediary, facilitator, or Qualified Intermediary. The party who facilitates a tax-deferred exchange by acquiring and selling property in an exchange to aid the taxpayer in complying with Section 1031 and all applicable rules. Accommodator s’ (FEA) annual conference, which was hosted in Denver earlier this month.
With one of the largest turnouts in years, we’re pleased to announce that the 1031 LKE market is on the rebound after the recent economic crisis, especially in regards to real estate exchanges. With no gains to defer, FEA members had been reporting as few as 1 or 2 transactions all year. Now, with property values on the rise, taxpayers are increasingly looking to defer gains through LKEs upon the sale of their investment and business use assets.
The conference shed light on much of the work being conducted behind the scenes in cooperation with our lawmakers. David Franasiak, principal at Williams & Jensen, the FEA’s lobbyist, provided a comprehensive overview of the efforts in D.C. regarding tax reform and fostering broad support for the continuance of LKEs. The FEA continues to educate the Senate Finance Committee and the House Ways and Means Committee regarding the benefits of 1031 exchanges in the face of pending tax reform.
Accruit continues to play an active role in the FEA, both in discussions with legislators in D.C. and locally. I am currently serving as the FEA’s Government Affairs Committee co-chair and Steve Chacon is serving as the association’s treasurer and on the executive committee. During the conference, we both took part in an FEA strategy planning session to define both long and short-term goals for the association. One goal is the establishment of a Political Action Committee to help support legislative changes.
This year’s conference was a great success and the 1031 LKE market is poised for continued growth. Stay tuned for further information regarding the FEA and 1031 industry news and updates.