Accruit is proud to announce that two of our esteemed team members, Maritza Castillo and Dina Bardakh, have successfully earned their Certified Exchange Specialist® (CES®) designations. This significant achievement underscores their expertise and dedication to the field of 1031 exchanges.
To receive the CES® designation, Maritza and Dina had to meet specific work experience criteria and pass a rigorous exam covering 1031 exchange rules, critical activities of an exchange facilitator, and ethical issues that may arise during a 1031 exchange. Their success in attaining this certification demonstrates their high level of knowledge and competency, reinforcing their ability to provide exceptional service to our clients.
The CES® Certification Council within the Federation of Exchange Accommodators (FEA) administers the CES® exam, which was first conducted in May 2003. Since then, the CES® designation has become a mark of excellence within the industry, signifying that the holder possesses extensive knowledge and experience in 1031 exchanges.
“We are thrilled to celebrate Maritza’s and Dina’s accomplishment and proud to have them as part of the Accruit team,” said Brent Abrahm, President and CEO of Accruit. “Their dedication to professional development and excellence reflects our company’s commitment to providing the highest quality service to our clients.”
Maritza and Dina join a distinguished group of professionals who have earned the CES® designation, showcasing their commitment to upholding the highest standards in the industry. Accruit is proud to now boast eight total CES® on staff, in addition to the rest of highly qualified team.
About Accruit
Accruit, an Inspira Financial Solution, is a leading full service Qualified Intermediary and developer of the industry’s only patented 1031 Exchange technology. Founded in 2000 and acquired by Inspira Financial in 2023, Accruit has gained the trust of thousands of clients and become a leader in the industry through its highly credentialed experts, consistent delivery of service, innovative technologies, robust security protocols and financial strength.
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Accruit, National 1031 Exchange Qualified Intermediary, Team Members Achieve Prestigious CES® Certification
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Accruit, National 1031 Exchange Qualified Intermediary, Team Members Achieve Prestigious CES® Certification
Accruit is proud to announce that two of our esteemed team members, Maritza Castillo and Dina Bardakh, have successfully earned their Certified Exchange Specialist® (CES®) designations. This significant achievement underscores their expertise and dedication to the field of 1031 exchanges.
To receive the CES® designation, Maritza and Dina had to meet specific work experience criteria and pass a rigorous exam covering 1031 exchange rules, critical activities of an exchange facilitator, and ethical issues that may arise during a 1031 exchange. Their success in attaining this certification demonstrates their high level of knowledge and competency, reinforcing their ability to provide exceptional service to our clients.
The CES® Certification Council within the Federation of Exchange Accommodators (FEA) administers the CES® exam, which was first conducted in May 2003. Since then, the CES® designation has become a mark of excellence within the industry, signifying that the holder possesses extensive knowledge and experience in 1031 exchanges.
“We are thrilled to celebrate Maritza’s and Dina’s accomplishment and proud to have them as part of the Accruit team,” said Brent Abrahm, President and CEO of Accruit. “Their dedication to professional development and excellence reflects our company’s commitment to providing the highest quality service to our clients.”
Maritza and Dina join a distinguished group of professionals who have earned the CES® designation, showcasing their commitment to upholding the highest standards in the industry. Accruit is proud to now boast eight total CES® on staff, in addition to the rest of highly qualified team.
About Accruit
Accruit, an Inspira Financial Solution, is a leading full service Qualified Intermediary and developer of the industry’s only patented 1031 Exchange technology. Founded in 2000 and acquired by Inspira Financial in 2023, Accruit has gained the trust of thousands of clients and become a leader in the industry through its highly credentialed experts, consistent delivery of service, innovative technologies, robust security protocols and financial strength. -
Accruit, National 1031 Exchange Qualified Intermediary, Team Members Achieve Prestigious CES® Certification
Accruit is proud to announce that two of our esteemed team members, Maritza Castillo and Dina Bardakh, have successfully earned their Certified Exchange Specialist® (CES®) designations. This significant achievement underscores their expertise and dedication to the field of 1031 exchanges.
To receive the CES® designation, Maritza and Dina had to meet specific work experience criteria and pass a rigorous exam covering 1031 exchange rules, critical activities of an exchange facilitator, and ethical issues that may arise during a 1031 exchange. Their success in attaining this certification demonstrates their high level of knowledge and competency, reinforcing their ability to provide exceptional service to our clients.
The CES® Certification Council within the Federation of Exchange Accommodators (FEA) administers the CES® exam, which was first conducted in May 2003. Since then, the CES® designation has become a mark of excellence within the industry, signifying that the holder possesses extensive knowledge and experience in 1031 exchanges.
“We are thrilled to celebrate Maritza’s and Dina’s accomplishment and proud to have them as part of the Accruit team,” said Brent Abrahm, President and CEO of Accruit. “Their dedication to professional development and excellence reflects our company’s commitment to providing the highest quality service to our clients.”
Maritza and Dina join a distinguished group of professionals who have earned the CES® designation, showcasing their commitment to upholding the highest standards in the industry. Accruit is proud to now boast eight total CES® on staff, in addition to the rest of highly qualified team.
About Accruit
Accruit, an Inspira Financial Solution, is a leading full service Qualified Intermediary and developer of the industry’s only patented 1031 Exchange technology. Founded in 2000 and acquired by Inspira Financial in 2023, Accruit has gained the trust of thousands of clients and become a leader in the industry through its highly credentialed experts, consistent delivery of service, innovative technologies, robust security protocols and financial strength. -
Commercial Real Estate Transactions and 1031 Exchanges in California
Current Landscape of Commercial Real Estate Transactions in California
In recent years, California has seen a significant rise in commercial real estate transactions, driven by a diversified economy. In 2023, commercial real estate transactions in California totaled over $60 billion, a 15% increase from the previous year. Multifamily and industrial properties have led the market, with multifamily properties comprising approximately 40% of all transactions. This can be attributed to persistent housing shortages in the face of high demand, particularly in urban areas. A large factor contributing to the success of these properties is the pandemic and the subsequent post-pandemic recovery period, which heightened the need for stable and affordable housing. The multifamily sector continues to remain strong due to California’s ongoing housing crisis, where demand is outpacing supply. With the state’s population growth and urbanization trends, these properties offer promising returns and long-term value appreciation. The pandemic and post-pandemic market trends have also shown a skyrocketing growth in e-commerce, which has resulted in an immense need for distribution and fulfillment centers. As businesses adapted to these changes, investors recognized the potential of industrial properties, such as warehouses and distribution centers, which have become increasingly vital in the supply chain. As the market evolves, understanding these dynamics will be crucial for making informed investment decisions that maximize returns in California’s competitive real estate environment.
Statistical Trends Favoring 1031 Exchanges
With high property values and significant transaction volumes, the potential for 1031 Exchanges in California is immense. The state is notorious for commanding some of the highest real estate prices in the country, with the average sales price for commercial properties in California hovering at approximately $1.5 million, with urban centers like San Francisco and Los Angeles often seeing even higher prices. For example, in San Francisco, commercial properties can easily surpass the $2 million mark, driven by the city’s tech boom and limited space for expansion. Similarly, in Los Angeles, prime commercial properties in sectors such as entertainment and media are securing premium prices due to their central locations and increasing demand.
As California’s economy continues to diversify, the demand for commercial real estate is expected to grow even further. Emerging sectors like technology, biotech, and renewable energy are driving new real estate development and acquisitions. The tech sector alone is projected to add over 200,000 jobs in the state by 2025, a surge that will undoubtedly drive greater demand for office space, research facilities, and other commercial properties. Additionally, the push for sustainability and renewable energy is driving the need for industrial spaces and manufacturing facilities. As these industries grow, investors can use 1031 Exchanges to transition their assets into high-growth sectors, staying ahead of market trends while deferring taxes and maximizing returns.
Tax Liabilities Specific to California
Utilizing a 1031 Exchange can help mitigate significant tax liabilities that an investor would face in the high-cost market of California. But while considering a 1031 Exchange, it is important to understand exactly what tax liabilities Californian transactions could be subject to, as well as recognizing the regulating bodies in charge.
California Franchise Tax Board (FTB)
The California Franchise Tax Board (FTB) is the taxing authority for the State of California that collects corporate and state income taxes. The FTB plays a key role in administering taxes related to commercial properties, including capital gains taxes on real estate sales. For 1031 Exchanges, the FTB follows federal guidelines allowing property owners to defer capital gains taxes when they reinvest proceeds into like-kind properties. However, state-specific rules may apply, such as the need to report exchanges and potentially pay deferred taxes if the Replacement Property(ies) is outside California. Compliance with both federal and state tax laws is crucial for commercial property investors using 1031 Exchanges.
Deferral of State Taxes:
While federal tax law allows for the deferral of capital gains taxes, California has its own tax implications. Investors must understand that while the federal government allows deferral, the California Franchise Tax Board (FTB) imposes additional state taxes on the gains when the property is sold and not replaced with another California property. The capital gains from the sale of the Relinquished Property will be subject to California’s state income tax rates, which can be as high as 13.3%, depending on the Seller’s income bracket. High earners, especially those selling investment properties, are subject to the upper end of this tax rate. California treats capital gains as regular income, so any gain from the sale of the Relinquished Property will be taxed according to the individual’s income tax bracket. For high-income individuals, California imposes an additional 1% surtax on income exceeding $1 million. This tax is known as the “Mental Health Services Act” tax and applies to capital gains from the sale of property if the Seller’s total income surpasses $1 million. Lastly, there is withholding tax on sales by nonresidents. If the property Seller is a nonresident of California, the FTB generally requires withholding 3.33% of the total sale price, or the Seller can choose to have the withholding based on the gain from the sale instead.
California Clawback Rule:
The California Clawback Rule refers to the state’s requirement that taxes deferred under a 1031 Exchange must eventually be paid on any gains that originated from a California property, even if the property has been exchanged for one located in another state. This rule is where the state of California “claws back” any deferred taxes once the Exchanger cashes out. Key points about this rule include:
Gain from California Property: If California property is exchanged for out-of-state property, any gain realized from the California property remains subject to California state taxes. The state tracks the deferred capital gains on the California property.
Filing a California Tax Return: California law requires that investors continue to file a California tax return each year, reporting the deferred gain on the Californian Relinquished Property, even if the Replacement Property(ies) is in another state.
Tax Due Upon “Cashing Out”: If the investor eventually sells the out-of-state Replacement Property(ies) and “cashes out” (does not do another 1031 Exchange), they will owe California taxes on the deferred gains from the original California Relinquished Property, in addition to any taxes due in the state where the Replacement Property(ies) is sold.
Continuous Deferral: If the investor continues to do 1031 Exchanges, they can keep deferring both federal capital gains taxes and California state taxes, but the deferred gain from the California Relinquished Property will still be tracked by California.
Choosing the Right Qualified Intermediary
To successfully complete a 1031 Exchange, it’s critical to use a knowledgeable and experienced national Qualified Intermediary (QI). Given California’s specific tax rules, including the state’s “Clawback Rule” and the importance of properly adhering to the like-kind property requirements, using a QI that understands the complexities and nuances of California’s real estate and tax landscape is essential. Failing to work with an experienced, accredited QI can lead to significant financial risks, including the loss of your tax deferral benefits. As one of the nation’s leading providers of 1031 Exchange services, our experienced Accruit team and seamless processes is what investors need to ensure compliance with federal and state tax regulations.
California’s growing commercial real estate market, paired with the potential of 1031 Exchanges, presents a significant opportunity for investors seeking to expand their portfolios while achieving tax deferral. By staying informed about the state’s tax implications, market trends, and the nuances of 1031 Exchanges, investors can better navigate the challenges and opportunities that California offers. Whether you’re investing in multifamily housing, industrial properties, or exploring emerging sectors, utilizing a 1031 Exchange and an experienced QI, such as Accruit, could be essential in optimizing your investment strategy and achieving long-term success in this dynamic commercial market.
The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary, and as such does not offer or sell investments or provide investment, legal, or tax advice. -
Commercial Real Estate Transactions and 1031 Exchanges in California
Current Landscape of Commercial Real Estate Transactions in California
In recent years, California has seen a significant rise in commercial real estate transactions, driven by a diversified economy. In 2023, commercial real estate transactions in California totaled over $60 billion, a 15% increase from the previous year. Multifamily and industrial properties have led the market, with multifamily properties comprising approximately 40% of all transactions. This can be attributed to persistent housing shortages in the face of high demand, particularly in urban areas. A large factor contributing to the success of these properties is the pandemic and the subsequent post-pandemic recovery period, which heightened the need for stable and affordable housing. The multifamily sector continues to remain strong due to California’s ongoing housing crisis, where demand is outpacing supply. With the state’s population growth and urbanization trends, these properties offer promising returns and long-term value appreciation. The pandemic and post-pandemic market trends have also shown a skyrocketing growth in e-commerce, which has resulted in an immense need for distribution and fulfillment centers. As businesses adapted to these changes, investors recognized the potential of industrial properties, such as warehouses and distribution centers, which have become increasingly vital in the supply chain. As the market evolves, understanding these dynamics will be crucial for making informed investment decisions that maximize returns in California’s competitive real estate environment.
Statistical Trends Favoring 1031 Exchanges
With high property values and significant transaction volumes, the potential for 1031 Exchanges in California is immense. The state is notorious for commanding some of the highest real estate prices in the country, with the average sales price for commercial properties in California hovering at approximately $1.5 million, with urban centers like San Francisco and Los Angeles often seeing even higher prices. For example, in San Francisco, commercial properties can easily surpass the $2 million mark, driven by the city’s tech boom and limited space for expansion. Similarly, in Los Angeles, prime commercial properties in sectors such as entertainment and media are securing premium prices due to their central locations and increasing demand.
As California’s economy continues to diversify, the demand for commercial real estate is expected to grow even further. Emerging sectors like technology, biotech, and renewable energy are driving new real estate development and acquisitions. The tech sector alone is projected to add over 200,000 jobs in the state by 2025, a surge that will undoubtedly drive greater demand for office space, research facilities, and other commercial properties. Additionally, the push for sustainability and renewable energy is driving the need for industrial spaces and manufacturing facilities. As these industries grow, investors can use 1031 Exchanges to transition their assets into high-growth sectors, staying ahead of market trends while deferring taxes and maximizing returns.
Tax Liabilities Specific to California
Utilizing a 1031 Exchange can help mitigate significant tax liabilities that an investor would face in the high-cost market of California. But while considering a 1031 Exchange, it is important to understand exactly what tax liabilities Californian transactions could be subject to, as well as recognizing the regulating bodies in charge.
California Franchise Tax Board (FTB)
The California Franchise Tax Board (FTB) is the taxing authority for the State of California that collects corporate and state income taxes. The FTB plays a key role in administering taxes related to commercial properties, including capital gains taxes on real estate sales. For 1031 Exchanges, the FTB follows federal guidelines allowing property owners to defer capital gains taxes when they reinvest proceeds into like-kind properties. However, state-specific rules may apply, such as the need to report exchanges and potentially pay deferred taxes if the Replacement Property(ies) is outside California. Compliance with both federal and state tax laws is crucial for commercial property investors using 1031 Exchanges.
Deferral of State Taxes:
While federal tax law allows for the deferral of capital gains taxes, California has its own tax implications. Investors must understand that while the federal government allows deferral, the California Franchise Tax Board (FTB) imposes additional state taxes on the gains when the property is sold and not replaced with another California property. The capital gains from the sale of the Relinquished Property will be subject to California’s state income tax rates, which can be as high as 13.3%, depending on the Seller’s income bracket. High earners, especially those selling investment properties, are subject to the upper end of this tax rate. California treats capital gains as regular income, so any gain from the sale of the Relinquished Property will be taxed according to the individual’s income tax bracket. For high-income individuals, California imposes an additional 1% surtax on income exceeding $1 million. This tax is known as the “Mental Health Services Act” tax and applies to capital gains from the sale of property if the Seller’s total income surpasses $1 million. Lastly, there is withholding tax on sales by nonresidents. If the property Seller is a nonresident of California, the FTB generally requires withholding 3.33% of the total sale price, or the Seller can choose to have the withholding based on the gain from the sale instead.
California Clawback Rule:
The California Clawback Rule refers to the state’s requirement that taxes deferred under a 1031 Exchange must eventually be paid on any gains that originated from a California property, even if the property has been exchanged for one located in another state. This rule is where the state of California “claws back” any deferred taxes once the Exchanger cashes out. Key points about this rule include:
Gain from California Property: If California property is exchanged for out-of-state property, any gain realized from the California property remains subject to California state taxes. The state tracks the deferred capital gains on the California property.
Filing a California Tax Return: California law requires that investors continue to file a California tax return each year, reporting the deferred gain on the Californian Relinquished Property, even if the Replacement Property(ies) is in another state.
Tax Due Upon “Cashing Out”: If the investor eventually sells the out-of-state Replacement Property(ies) and “cashes out” (does not do another 1031 Exchange), they will owe California taxes on the deferred gains from the original California Relinquished Property, in addition to any taxes due in the state where the Replacement Property(ies) is sold.
Continuous Deferral: If the investor continues to do 1031 Exchanges, they can keep deferring both federal capital gains taxes and California state taxes, but the deferred gain from the California Relinquished Property will still be tracked by California.
Choosing the Right Qualified Intermediary
To successfully complete a 1031 Exchange, it’s critical to use a knowledgeable and experienced national Qualified Intermediary (QI). Given California’s specific tax rules, including the state’s “Clawback Rule” and the importance of properly adhering to the like-kind property requirements, using a QI that understands the complexities and nuances of California’s real estate and tax landscape is essential. Failing to work with an experienced, accredited QI can lead to significant financial risks, including the loss of your tax deferral benefits. As one of the nation’s leading providers of 1031 Exchange services, our experienced Accruit team and seamless processes is what investors need to ensure compliance with federal and state tax regulations.
California’s growing commercial real estate market, paired with the potential of 1031 Exchanges, presents a significant opportunity for investors seeking to expand their portfolios while achieving tax deferral. By staying informed about the state’s tax implications, market trends, and the nuances of 1031 Exchanges, investors can better navigate the challenges and opportunities that California offers. Whether you’re investing in multifamily housing, industrial properties, or exploring emerging sectors, utilizing a 1031 Exchange and an experienced QI, such as Accruit, could be essential in optimizing your investment strategy and achieving long-term success in this dynamic commercial market.
The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary, and as such does not offer or sell investments or provide investment, legal, or tax advice. -
Commercial Real Estate Transactions and 1031 Exchanges in California
Current Landscape of Commercial Real Estate Transactions in California
In recent years, California has seen a significant rise in commercial real estate transactions, driven by a diversified economy. In 2023, commercial real estate transactions in California totaled over $60 billion, a 15% increase from the previous year. Multifamily and industrial properties have led the market, with multifamily properties comprising approximately 40% of all transactions. This can be attributed to persistent housing shortages in the face of high demand, particularly in urban areas. A large factor contributing to the success of these properties is the pandemic and the subsequent post-pandemic recovery period, which heightened the need for stable and affordable housing. The multifamily sector continues to remain strong due to California’s ongoing housing crisis, where demand is outpacing supply. With the state’s population growth and urbanization trends, these properties offer promising returns and long-term value appreciation. The pandemic and post-pandemic market trends have also shown a skyrocketing growth in e-commerce, which has resulted in an immense need for distribution and fulfillment centers. As businesses adapted to these changes, investors recognized the potential of industrial properties, such as warehouses and distribution centers, which have become increasingly vital in the supply chain. As the market evolves, understanding these dynamics will be crucial for making informed investment decisions that maximize returns in California’s competitive real estate environment.
Statistical Trends Favoring 1031 Exchanges
With high property values and significant transaction volumes, the potential for 1031 Exchanges in California is immense. The state is notorious for commanding some of the highest real estate prices in the country, with the average sales price for commercial properties in California hovering at approximately $1.5 million, with urban centers like San Francisco and Los Angeles often seeing even higher prices. For example, in San Francisco, commercial properties can easily surpass the $2 million mark, driven by the city’s tech boom and limited space for expansion. Similarly, in Los Angeles, prime commercial properties in sectors such as entertainment and media are securing premium prices due to their central locations and increasing demand.
As California’s economy continues to diversify, the demand for commercial real estate is expected to grow even further. Emerging sectors like technology, biotech, and renewable energy are driving new real estate development and acquisitions. The tech sector alone is projected to add over 200,000 jobs in the state by 2025, a surge that will undoubtedly drive greater demand for office space, research facilities, and other commercial properties. Additionally, the push for sustainability and renewable energy is driving the need for industrial spaces and manufacturing facilities. As these industries grow, investors can use 1031 Exchanges to transition their assets into high-growth sectors, staying ahead of market trends while deferring taxes and maximizing returns.
Tax Liabilities Specific to California
Utilizing a 1031 Exchange can help mitigate significant tax liabilities that an investor would face in the high-cost market of California. But while considering a 1031 Exchange, it is important to understand exactly what tax liabilities Californian transactions could be subject to, as well as recognizing the regulating bodies in charge.
California Franchise Tax Board (FTB)
The California Franchise Tax Board (FTB) is the taxing authority for the State of California that collects corporate and state income taxes. The FTB plays a key role in administering taxes related to commercial properties, including capital gains taxes on real estate sales. For 1031 Exchanges, the FTB follows federal guidelines allowing property owners to defer capital gains taxes when they reinvest proceeds into like-kind properties. However, state-specific rules may apply, such as the need to report exchanges and potentially pay deferred taxes if the Replacement Property(ies) is outside California. Compliance with both federal and state tax laws is crucial for commercial property investors using 1031 Exchanges.
Deferral of State Taxes:
While federal tax law allows for the deferral of capital gains taxes, California has its own tax implications. Investors must understand that while the federal government allows deferral, the California Franchise Tax Board (FTB) imposes additional state taxes on the gains when the property is sold and not replaced with another California property. The capital gains from the sale of the Relinquished Property will be subject to California’s state income tax rates, which can be as high as 13.3%, depending on the Seller’s income bracket. High earners, especially those selling investment properties, are subject to the upper end of this tax rate. California treats capital gains as regular income, so any gain from the sale of the Relinquished Property will be taxed according to the individual’s income tax bracket. For high-income individuals, California imposes an additional 1% surtax on income exceeding $1 million. This tax is known as the “Mental Health Services Act” tax and applies to capital gains from the sale of property if the Seller’s total income surpasses $1 million. Lastly, there is withholding tax on sales by nonresidents. If the property Seller is a nonresident of California, the FTB generally requires withholding 3.33% of the total sale price, or the Seller can choose to have the withholding based on the gain from the sale instead.
California Clawback Rule:
The California Clawback Rule refers to the state’s requirement that taxes deferred under a 1031 Exchange must eventually be paid on any gains that originated from a California property, even if the property has been exchanged for one located in another state. This rule is where the state of California “claws back” any deferred taxes once the Exchanger cashes out. Key points about this rule include:
Gain from California Property: If California property is exchanged for out-of-state property, any gain realized from the California property remains subject to California state taxes. The state tracks the deferred capital gains on the California property.
Filing a California Tax Return: California law requires that investors continue to file a California tax return each year, reporting the deferred gain on the Californian Relinquished Property, even if the Replacement Property(ies) is in another state.
Tax Due Upon “Cashing Out”: If the investor eventually sells the out-of-state Replacement Property(ies) and “cashes out” (does not do another 1031 Exchange), they will owe California taxes on the deferred gains from the original California Relinquished Property, in addition to any taxes due in the state where the Replacement Property(ies) is sold.
Continuous Deferral: If the investor continues to do 1031 Exchanges, they can keep deferring both federal capital gains taxes and California state taxes, but the deferred gain from the California Relinquished Property will still be tracked by California.
Choosing the Right Qualified Intermediary
To successfully complete a 1031 Exchange, it’s critical to use a knowledgeable and experienced national Qualified Intermediary (QI). Given California’s specific tax rules, including the state’s “Clawback Rule” and the importance of properly adhering to the like-kind property requirements, using a QI that understands the complexities and nuances of California’s real estate and tax landscape is essential. Failing to work with an experienced, accredited QI can lead to significant financial risks, including the loss of your tax deferral benefits. As one of the nation’s leading providers of 1031 Exchange services, our experienced Accruit team and seamless processes is what investors need to ensure compliance with federal and state tax regulations.
California’s growing commercial real estate market, paired with the potential of 1031 Exchanges, presents a significant opportunity for investors seeking to expand their portfolios while achieving tax deferral. By staying informed about the state’s tax implications, market trends, and the nuances of 1031 Exchanges, investors can better navigate the challenges and opportunities that California offers. Whether you’re investing in multifamily housing, industrial properties, or exploring emerging sectors, utilizing a 1031 Exchange and an experienced QI, such as Accruit, could be essential in optimizing your investment strategy and achieving long-term success in this dynamic commercial market.
The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary, and as such does not offer or sell investments or provide investment, legal, or tax advice. -
Accruit Recap of FEA Annual Conference 2024
1031 Exchange Industry Education and Involvement
Accruit continued its deep-rooted involvement in educating peers within the 1031 Exchange industry with David Gorenberg co-presenting the 1031 Exchange Bootcamp, which covered topics such as the role of Qualified Intermediaries, intricacies of identification rules, mixed-use properties, and safe harbors. David also led a General Session discussion, A Frank Discussion on Ethics, where the relationship between ethics and 1031 Exchanges was analyzed. As a past co-chair of the FEA Ethics Committee, David’s insights were essential to the conversation.
Brent Abrahm, President and CEO of Accruit, was involved in a panel discussion regarding the FEA Political Action Committee (PAC). The panel underscored the importance of funding the PAC through individual FEA members to help support the work being done in Washington D.C. to protect IRC Section 1031. Brent is proud to point out that, “Accruit was recognized as the only company in the FEA that had 100% participation to the FEA PAC in 2023 and our goal is to do it again in 2024.”
Steve Holtkamp, Senior Managing Director and Chief Revenue Officer, was also present at the conference, attending the Board of Directors meeting to which he is a member. “Steve’s thoughtful approach and meaningful participation on the Board have been recognized and appreciated by his fellow Board members,” said Max Hansen, Managing Director at Accruit.
Michele Smith and Asher joined the rest of the Accruit team at the conference to attend the educational presentations to stay up to date on the latest concepts, receive CE credit, and uphold their status as Certified Exchange Specialists®. Additionally, Ellie Trovato was recognized for being the newest member of the CES® Certification council.
First-time attendees Darcy Yeldell and Noah Doran were delighted to join Accruit’s veteran attendees at the conference.
Darcy shared that, “Having the opportunity to surround myself with other industry professionals and colleagues was amazing. The wealth of knowledge was cool to see and even though a lot of us are competitors, you could feel that we all came together to support each other and our love for 1031’s!”
Noah noted that the FEA Annual Conference was, “An excellent opportunity to meet others new to the FEA, and the speakers emphasized the importance of getting involved. Their encouragement inspired me to join the Membership Committee, which I’m excited about!”
1031 Achievements and Recognition
We are thrilled to announce that at the FEA Annual Conference David Gorenberg, Educational and Technical Director, was recognized for his involvement in the 1031 Exchange industry as a recipient of the prestigious Margo McDonnell Certified Exchange Specialist® Perpetual Award. This award is based on peer nominations and given to an individual who has demonstrated outstanding dedication and made exceptional contributions to the 1031 Exchange industry. “In his usual humble way, David was very surprised when he received the richly deserved award. Aside from being a great human being and serving as a past President of the FEA, it really is the pinnacle of David’s career,” said Max Hansen.
David has over 30 years’ experience involved in the 1031 industry, he is a current member and past president of the FEA and co-chair of the FEA Ethics Committee. His contributions include lecturing at the Real Estate Investment Securities Association, National Association of REALTORS®, and multiple FEA Conferences amongst many others.
David wasn’t the only member of Accruit to be recognized for his contributions and commitment to the 1031 Exchange industry at the Annual Conference. Steve Holtkamp was elected to a 2nd term on the FEA Board of Directors and was also asked to serve as the FEA’s incoming Treasurer and Secretary. Reflecting on his involvement, Steve shared, “I was on the Finance Committee and really enjoyed participating and was able to provide a lot of value on that front given my background, so it was my pleasure to step into the role of Treasurer.” He hopes to further his leadership journey, adding, “Hopefully I get the opportunity to serve as President in two years.”
Exchange Manager ProSM, Patented 1031 Exchange Workflow Software
At the FEA Conference Exhibit Hall, Accruit Technologies, led by Marita Kazos and Dave Tornell, proudly showcased Exchange Manager Pro℠, patented 1031 Exchange workflow software, to fellow 1031 industry peers and Qualified Intermediaries. The conference provided the Accruit team an opportunity to connect with Exchange Manager ProSM clients, as well as some clients of Managed Service, integrated 1031 Exchange program. The Business Development team discussed success stories, plans for the future of the technology and strengthened partnerships. According to Marita, there was a lot of buzz surrounding Exchange Manager Pro℠, as she had multiple current clients come to the booth to say that they love the software, as well as prospective interest from other QIs. The Accruit team deeply values recognition received from fellow 1031 industry professionals and the positive feedback from our clients and peers regarding our software solutions and dedication to outstanding service. This motivates us to continue striving for excellence, be a leader in the industry and continue to revolutionize 1031 at every step.
Business First, Fun Included
The FEA Annual Conference was not only an incredible event for 1031 education, industry discussions, and business development, but also a fantastic opportunity to connect with fellow 1031 professionals, foster relationships, and enjoy some fun together.
Our very own CEO, Brent Abrahm, coordinated the 2nd annual charity bike ride in support of the https://johnlockhartfoundation.com/index.html”>John Lockhart Foundation, a local charity that supports vulnerable children in the Austin area as well as raises awareness for colon cancer. The 20-mile ride in the Southern Walnut Creek area included riders from Chicago Deferred Exchange Corp, Clark Wealth Management, HUB 1031, Hogan Land Title Company, First American Exchange, National Realty Exchange, and Encore Bank. The ride resulted in the group raising just under $1,000 for the cause. A highlight of this bike ride was Lance Armstrong cycling past the group – sighting confirmed by Strava, an exercise tracking app.
The 2024 FEA Annual Conference was an outstanding event for not only Accruit, but the entire 1031 Exchange industry. It was filled with insightful discussions, meaningful recognition, and valuable networking opportunities. Beyond the professional achievements, the conference was a reminder of the strength and camaraderie within the 1031 community. We look forward to building on this momentum and seeing everyone again at next year’s conference! -
Accruit Recap of FEA Annual Conference 2024
1031 Exchange Industry Education and Involvement
Accruit continued its deep-rooted involvement in educating peers within the 1031 Exchange industry with David Gorenberg co-presenting the 1031 Exchange Bootcamp, which covered topics such as the role of Qualified Intermediaries, intricacies of identification rules, mixed-use properties, and safe harbors. David also led a General Session discussion, A Frank Discussion on Ethics, where the relationship between ethics and 1031 Exchanges was analyzed. As a past co-chair of the FEA Ethics Committee, David’s insights were essential to the conversation.
Brent Abrahm, President and CEO of Accruit, was involved in a panel discussion regarding the FEA Political Action Committee (PAC). The panel underscored the importance of funding the PAC through individual FEA members to help support the work being done in Washington D.C. to protect IRC Section 1031. Brent is proud to point out that, “Accruit was recognized as the only company in the FEA that had 100% participation to the FEA PAC in 2023 and our goal is to do it again in 2024.”
Steve Holtkamp, Senior Managing Director and Chief Revenue Officer, was also present at the conference, attending the Board of Directors meeting to which he is a member. “Steve’s thoughtful approach and meaningful participation on the Board have been recognized and appreciated by his fellow Board members,” said Max Hansen, Managing Director at Accruit.
Michele Smith and Asher joined the rest of the Accruit team at the conference to attend the educational presentations to stay up to date on the latest concepts, receive CE credit, and uphold their status as Certified Exchange Specialists®. Additionally, Ellie Trovato was recognized for being the newest member of the CES® Certification council.
First-time attendees Darcy Yeldell and Noah Doran were delighted to join Accruit’s veteran attendees at the conference.
Darcy shared that, “Having the opportunity to surround myself with other industry professionals and colleagues was amazing. The wealth of knowledge was cool to see and even though a lot of us are competitors, you could feel that we all came together to support each other and our love for 1031’s!”
Noah noted that the FEA Annual Conference was, “An excellent opportunity to meet others new to the FEA, and the speakers emphasized the importance of getting involved. Their encouragement inspired me to join the Membership Committee, which I’m excited about!”
1031 Achievements and Recognition
We are thrilled to announce that at the FEA Annual Conference David Gorenberg, Educational and Technical Director, was recognized for his involvement in the 1031 Exchange industry as a recipient of the prestigious Margo McDonnell Certified Exchange Specialist® Perpetual Award. This award is based on peer nominations and given to an individual who has demonstrated outstanding dedication and made exceptional contributions to the 1031 Exchange industry. “In his usual humble way, David was very surprised when he received the richly deserved award. Aside from being a great human being and serving as a past President of the FEA, it really is the pinnacle of David’s career,” said Max Hansen.
David has over 30 years’ experience involved in the 1031 industry, he is a current member and past president of the FEA and co-chair of the FEA Ethics Committee. His contributions include lecturing at the Real Estate Investment Securities Association, National Association of REALTORS®, and multiple FEA Conferences amongst many others.
David wasn’t the only member of Accruit to be recognized for his contributions and commitment to the 1031 Exchange industry at the Annual Conference. Steve Holtkamp was elected to a 2nd term on the FEA Board of Directors and was also asked to serve as the FEA’s incoming Treasurer and Secretary. Reflecting on his involvement, Steve shared, “I was on the Finance Committee and really enjoyed participating and was able to provide a lot of value on that front given my background, so it was my pleasure to step into the role of Treasurer.” He hopes to further his leadership journey, adding, “Hopefully I get the opportunity to serve as President in two years.”
Exchange Manager ProSM, Patented 1031 Exchange Workflow Software
At the FEA Conference Exhibit Hall, Accruit Technologies, led by Marita Kazos and Dave Tornell, proudly showcased Exchange Manager Pro℠, patented 1031 Exchange workflow software, to fellow 1031 industry peers and Qualified Intermediaries. The conference provided the Accruit team an opportunity to connect with Exchange Manager ProSM clients, as well as some clients of Managed Service, integrated 1031 Exchange program. The Business Development team discussed success stories, plans for the future of the technology and strengthened partnerships. According to Marita, there was a lot of buzz surrounding Exchange Manager Pro℠, as she had multiple current clients come to the booth to say that they love the software, as well as prospective interest from other QIs. The Accruit team deeply values recognition received from fellow 1031 industry professionals and the positive feedback from our clients and peers regarding our software solutions and dedication to outstanding service. This motivates us to continue striving for excellence, be a leader in the industry and continue to revolutionize 1031 at every step.
Business First, Fun Included
The FEA Annual Conference was not only an incredible event for 1031 education, industry discussions, and business development, but also a fantastic opportunity to connect with fellow 1031 professionals, foster relationships, and enjoy some fun together.
Our very own CEO, Brent Abrahm, coordinated the 2nd annual charity bike ride in support of the https://johnlockhartfoundation.com/index.html”>John Lockhart Foundation, a local charity that supports vulnerable children in the Austin area as well as raises awareness for colon cancer. The 20-mile ride in the Southern Walnut Creek area included riders from Chicago Deferred Exchange Corp, Clark Wealth Management, HUB 1031, Hogan Land Title Company, First American Exchange, National Realty Exchange, and Encore Bank. The ride resulted in the group raising just under $1,000 for the cause. A highlight of this bike ride was Lance Armstrong cycling past the group – sighting confirmed by Strava, an exercise tracking app.
The 2024 FEA Annual Conference was an outstanding event for not only Accruit, but the entire 1031 Exchange industry. It was filled with insightful discussions, meaningful recognition, and valuable networking opportunities. Beyond the professional achievements, the conference was a reminder of the strength and camaraderie within the 1031 community. We look forward to building on this momentum and seeing everyone again at next year’s conference! -
Accruit Recap of FEA Annual Conference 2024
1031 Exchange Industry Education and Involvement
Accruit continued its deep-rooted involvement in educating peers within the 1031 Exchange industry with David Gorenberg co-presenting the 1031 Exchange Bootcamp, which covered topics such as the role of Qualified Intermediaries, intricacies of identification rules, mixed-use properties, and safe harbors. David also led a General Session discussion, A Frank Discussion on Ethics, where the relationship between ethics and 1031 Exchanges was analyzed. As a past co-chair of the FEA Ethics Committee, David’s insights were essential to the conversation.
Brent Abrahm, President and CEO of Accruit, was involved in a panel discussion regarding the FEA Political Action Committee (PAC). The panel underscored the importance of funding the PAC through individual FEA members to help support the work being done in Washington D.C. to protect IRC Section 1031. Brent is proud to point out that, “Accruit was recognized as the only company in the FEA that had 100% participation to the FEA PAC in 2023 and our goal is to do it again in 2024.”
Steve Holtkamp, Senior Managing Director and Chief Revenue Officer, was also present at the conference, attending the Board of Directors meeting to which he is a member. “Steve’s thoughtful approach and meaningful participation on the Board have been recognized and appreciated by his fellow Board members,” said Max Hansen, Managing Director at Accruit.
Michele Smith and Asher joined the rest of the Accruit team at the conference to attend the educational presentations to stay up to date on the latest concepts, receive CE credit, and uphold their status as Certified Exchange Specialists®. Additionally, Ellie Trovato was recognized for being the newest member of the CES® Certification council.
First-time attendees Darcy Yeldell and Noah Doran were delighted to join Accruit’s veteran attendees at the conference.
Darcy shared that, “Having the opportunity to surround myself with other industry professionals and colleagues was amazing. The wealth of knowledge was cool to see and even though a lot of us are competitors, you could feel that we all came together to support each other and our love for 1031’s!”
Noah noted that the FEA Annual Conference was, “An excellent opportunity to meet others new to the FEA, and the speakers emphasized the importance of getting involved. Their encouragement inspired me to join the Membership Committee, which I’m excited about!”
1031 Achievements and Recognition
We are thrilled to announce that at the FEA Annual Conference David Gorenberg, Educational and Technical Director, was recognized for his involvement in the 1031 Exchange industry as a recipient of the prestigious Margo McDonnell Certified Exchange Specialist® Perpetual Award. This award is based on peer nominations and given to an individual who has demonstrated outstanding dedication and made exceptional contributions to the 1031 Exchange industry. “In his usual humble way, David was very surprised when he received the richly deserved award. Aside from being a great human being and serving as a past President of the FEA, it really is the pinnacle of David’s career,” said Max Hansen.
David has over 30 years’ experience involved in the 1031 industry, he is a current member and past president of the FEA and co-chair of the FEA Ethics Committee. His contributions include lecturing at the Real Estate Investment Securities Association, National Association of REALTORS®, and multiple FEA Conferences amongst many others.
David wasn’t the only member of Accruit to be recognized for his contributions and commitment to the 1031 Exchange industry at the Annual Conference. Steve Holtkamp was elected to a 2nd term on the FEA Board of Directors and was also asked to serve as the FEA’s incoming Treasurer and Secretary. Reflecting on his involvement, Steve shared, “I was on the Finance Committee and really enjoyed participating and was able to provide a lot of value on that front given my background, so it was my pleasure to step into the role of Treasurer.” He hopes to further his leadership journey, adding, “Hopefully I get the opportunity to serve as President in two years.”
Exchange Manager ProSM, Patented 1031 Exchange Workflow Software
At the FEA Conference Exhibit Hall, Accruit Technologies, led by Marita Kazos and Dave Tornell, proudly showcased Exchange Manager Pro℠, patented 1031 Exchange workflow software, to fellow 1031 industry peers and Qualified Intermediaries. The conference provided the Accruit team an opportunity to connect with Exchange Manager ProSM clients, as well as some clients of Managed Service, integrated 1031 Exchange program. The Business Development team discussed success stories, plans for the future of the technology and strengthened partnerships. According to Marita, there was a lot of buzz surrounding Exchange Manager Pro℠, as she had multiple current clients come to the booth to say that they love the software, as well as prospective interest from other QIs. The Accruit team deeply values recognition received from fellow 1031 industry professionals and the positive feedback from our clients and peers regarding our software solutions and dedication to outstanding service. This motivates us to continue striving for excellence, be a leader in the industry and continue to revolutionize 1031 at every step.
Business First, Fun Included
The FEA Annual Conference was not only an incredible event for 1031 education, industry discussions, and business development, but also a fantastic opportunity to connect with fellow 1031 professionals, foster relationships, and enjoy some fun together.
Our very own CEO, Brent Abrahm, coordinated the 2nd annual charity bike ride in support of the https://johnlockhartfoundation.com/index.html”>John Lockhart Foundation, a local charity that supports vulnerable children in the Austin area as well as raises awareness for colon cancer. The 20-mile ride in the Southern Walnut Creek area included riders from Chicago Deferred Exchange Corp, Clark Wealth Management, HUB 1031, Hogan Land Title Company, First American Exchange, National Realty Exchange, and Encore Bank. The ride resulted in the group raising just under $1,000 for the cause. A highlight of this bike ride was Lance Armstrong cycling past the group – sighting confirmed by Strava, an exercise tracking app.
The 2024 FEA Annual Conference was an outstanding event for not only Accruit, but the entire 1031 Exchange industry. It was filled with insightful discussions, meaningful recognition, and valuable networking opportunities. Beyond the professional achievements, the conference was a reminder of the strength and camaraderie within the 1031 community. We look forward to building on this momentum and seeing everyone again at next year’s conference! -
IRS Announces Tax Relief for Illinois Taxpayers Impacted by Severe Storms
Due to severe storms, tornadoes, straight-line winds and flooding, the IRS has issued Tax Relief for counties within Illinois.
Affected Taxpayers have until February 3, 2025, to make tax payments and file for various individual and business tax returns.
Currently, all individuals and households that reside in or have a business within Cook, Fulton, Henry, St. Clair, Washington, Will, and Winnebago counties in Illinois qualify for tax relief. Any area added to the disaster area at a later time will also qualify for tax relief.
An “Affected Taxpayer” includes individuals who live, and businesses whose principal place of business is in the Covered Disaster Area. Affected Taxpayers are entitled to relief regardless of where the relinquished property or replacement property is located. Affected Taxpayers may choose either the General Postponement relief under Section 6 OR the Alternative relief under Section 17 of Rev. Proc. 2018-58. Taxpayers who do not meet the definition of Affected Taxpayers do not qualify for Section 6 General Postponement relief.
Option One: General Postponement under Section 6 of Rev. Proc. 2018-58nt under Section 6 of Rev. Proc. 2018-58 (Affected Taxpayers only). Any 45-day deadline or 180-day deadline (for either a forward or reverse exchange) that falls on or after the Disaster Date above is postponed to the General Postponement Date. The General Postponement applies regardless of the date the Relinquished Property was transferred (or the parked property acquired by the EAT) and is available to Affected Taxpayers regardless of whether their exchange began before or after the Disaster Date.
Option Two: Section 17 Alternative (Available to (1) Affected Taxpayers and (2) other Taxpayers who have difficulty meeting the exchange deadlines because of the disaster. See Rev. Proc. 2018-58, Section 17 for conditions constituting “difficulty”). Option Two is only available if the relinquished property was transferred (or the parked property was acquired by the EAT) on or before the Disaster Date. Any 45-day or 180-day deadline that falls on or after the Disaster Date is extended to THE LONGER OF: (1) 120 days from such deadline; OR (2) the General Postponement Date. Note the date may not be extended beyond one year or the due date (including extensions) of the tax return for the year of the disposition of the relinquished property (typically, if an extension was filed, 9/15 for corporations and partnerships and 10/15 for other Taxpayers).
https://www.irs.gov/newsroom/irs-relief-now-available-to-hurricane-debb… for full details on the tax reliefhttps://www.irs.gov/newsroom/irs-relief-now-available-to-storm-victims-…;
The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary, and as such does not offer or sell investments or provide investment, legal, or tax advice.