Last month the Federation of Exchange Accommodators (FEA) held its annual conference in Las Vegas. The FEA is the national organization that represents professionals engaged in the practice of facilitating like-kind exchanges, known as qualified intermediaries (QIs). The FEA also counts as members, professionals not acting as QIs, but providing important services related to Section 1031 transactions. This year, economic expansion has resulted in higher attendance numbers, translating into one of the biggest conferences in recent memory.
This year’s meeting provided a forum for electing officers, conducting critical strategic planning sessions, and for leading highly informative educational sessions.
Election of Officers
This year, Accruit’s own Steve Chacon, Vice President of Exchange Service Operations was elected as the association’s president. Also elected were:
Teresa Person, President-Elect
Mike Anderson, Treasurer
Margo McDonnell will continue to serve as the association’s Immediate Past President.
Strategic Planning
Prior to the conference’s kickoff, the association’s Board of Directors met to focus upon legislative issues. The FEA Board of Directors also met for a wider strategic planning session to ensure the organization continues to effectively serve its membership through an updated plan to guide the organization into the future.
A Focus on Legislative Issues – Threats to Section 1031
The FEA’s Government Affairs Committee, Co-Chaired by Accruit CEO, Brent Abrahm, assembled an agenda to identify and guide the board through legislative challenges that lie ahead, including:
The House Republican Blueprint for Tax Reform
Senator Ron Wyden’s proposal for depreciation pooling
The President’s proposed 2017 budget
Overall tax reform plans
Threats also lie within proposals to limit like-kind exchanges from Secretary Clinton and Nominee Trump. Trump’s campaign has expressed interest in eliminating corporate tax expenditures which could directly impact Section 1031 and the role of the QI.
A Focus on a Wider Strategy
Leveraging feedback from the association’s membership, the board conducted a strategic planning session that included the following targeted outcomes:
Identifying mission and core values
Confirming the vision statement
Confirming key goal areas
Listing actions, responsibilities and time frames
The process for achieving the targeted outcomes included:
Reviewing targeted outcomes for the session and the strategic planning model
Identifying member characteristics and statistics
Sharing survey results
Setting goal performance measures
The FEA’s Board of Directors is currently reviewing, refining and finalizing the FEA’s wider strategic plan. The final plan will incorporate the results of the legislative strategic planning session and provide a comprehensive roadmap for the preservation and expansion of the association.
Educational Sessions
This year’s educational lineup included a host of technical experts conducting sessions with topics such as:
A View from the Hill – Accruit CEO, Brent Abrahm, joined by the FEA’s D.C. lobbyist and members of the Government Affairs Committee, gave an overview of the prospects for tax reform after the presidential election.
Protecting Against Cyber Fraud – Discussion on current cyber fraud/cyber-crime activities targeting banks and their clients and what companies can do to protect themselves
Foreign Investor: What You Need to Know for 1031 and FIRPTA Purposes – Discussion on how transactions subject to FIRPTA are complex and can potentially expose a QI to withholding obligations
State Issues Affecting 1031 Exchanges – Discussion on state-specific considerations for IRC Section 1031 transactions
Exchanges of Agricultural Property & Equipment, Conservations Easements, Water Rights and Other Assets – A discussion on agricultural exchanges, including their importance and how they are a catalyst for economic activity
The Road Ahead
Like-kind exchanges have been a hot topic amongst our federal lawmakers. With recent focus on federal deficits, budgets, tax reform and Presidential Nominee Trump’s tax returns, like-kind exchanges represent a significant revenue-raising opportunity. The FEA’s conference provided an important forum for those in the like-kind exchange industry to come together to refine and expand efforts to preserve and expand Section 1031.