The White House recently released details of President Joe Biden’s proposed $1.8 trillion American Families Plan. The Plan includes a cap on gains deferred through a 1031 exchange as a way to defray part of the Plan’s overall cost. The proposed limitation to 1031 exchanges would negatively impact American families and businesses.
This week, House Ways and Means Chairman Richard Neal notified the Committee’s members to be ready for the Committee reconciliation markup September 9-14. The Committee’s mark-up of their portion of the reconciliation bill will include all tax-related items in the legislation -this may include the proposed cap on Section 1031.
By clicking ‘take action today’ below you can quickly and easily send a letter to your representatives to let them know they should preserve Section 1031 rules and regulations in their current state.
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Take Action To Protect Section 1031 Like-kind Exchanges – Tax Reform Update
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Take Action To Protect Section 1031 Like-kind Exchanges – Tax Reform Update
The White House recently released details of President Joe Biden’s proposed $1.8 trillion American Families Plan. The Plan includes a cap on gains deferred through a 1031 exchange as a way to defray part of the Plan’s overall cost. The proposed limitation to 1031 exchanges would negatively impact American families and businesses.
This week, House Ways and Means Chairman Richard Neal notified the Committee’s members to be ready for the Committee reconciliation markup September 9-14. The Committee’s mark-up of their portion of the reconciliation bill will include all tax-related items in the legislation -this may include the proposed cap on Section 1031.
By clicking ‘take action today’ below you can quickly and easily send a letter to your representatives to let them know they should preserve Section 1031 rules and regulations in their current state. -
Take Action To Protect Section 1031 Like-kind Exchanges – Tax Reform Update
The White House recently released details of President Joe Biden’s proposed $1.8 trillion American Families Plan. The Plan includes a cap on gains deferred through a 1031 exchange as a way to defray part of the Plan’s overall cost. The proposed limitation to 1031 exchanges would negatively impact American families and businesses.
This week, House Ways and Means Chairman Richard Neal notified the Committee’s members to be ready for the Committee reconciliation markup September 9-14. The Committee’s mark-up of their portion of the reconciliation bill will include all tax-related items in the legislation -this may include the proposed cap on Section 1031.
By clicking ‘take action today’ below you can quickly and easily send a letter to your representatives to let them know they should preserve Section 1031 rules and regulations in their current state. -
Take Action To Protect Section 1031 Like-kind Exchanges – Tax Reform Update
The White House recently released details of President Joe Biden’s proposed $1.8 trillion American Families Plan. The Plan includes a cap on gains deferred through a 1031 exchange as a way to defray part of the Plan’s overall cost. The proposed limitation to 1031 exchanges would negatively impact American families and businesses.
This week, House Ways and Means Chairman Richard Neal notified the Committee’s members to be ready for the Committee reconciliation markup September 9-14. The Committee’s mark-up of their portion of the reconciliation bill will include all tax-related items in the legislation -this may include the proposed cap on Section 1031.
By clicking ‘take action today’ below you can quickly and easily send a letter to your representatives to let them know they should preserve Section 1031 rules and regulations in their current state. -
Take Action To Protect Section 1031 Like-kind Exchanges – Tax Reform Update
The White House recently released details of President Joe Biden’s proposed $1.8 trillion American Families Plan. The Plan includes a cap on gains deferred through a 1031 exchange as a way to defray part of the Plan’s overall cost. The proposed limitation to 1031 exchanges would negatively impact American families and businesses.
This week, House Ways and Means Chairman Richard Neal notified the Committee’s members to be ready for the Committee reconciliation markup September 9-14. The Committee’s mark-up of their portion of the reconciliation bill will include all tax-related items in the legislation -this may include the proposed cap on Section 1031.
By clicking ‘take action today’ below you can quickly and easily send a letter to your representatives to let them know they should preserve Section 1031 rules and regulations in their current state. -
Reverse Exchanges: Save and Make Money
During the 180-day window it takes to complete a Exchange Accommodation Titleholder, more commonly referred to as an EAT, and does what it says: it holds the title – nothing more. The property is then leased from the EAT, also the QI, to the taxpayer/exchanger. The EAT allows the investor to have full access to the new replacement property, also allowing access to profits from the new property right away. Let’s use an example to break down a reverse exchange and its benefits:
A commercial real estate investor owns an apartment building with a market value of $3.2 million and yields a monthly rental income of $15,000 This investor wants to upgrade their investment and purchase an office building for $5.3 million, which generates a monthly $25,000 in rental income. The investor enters into a contract to acquire the office building.
This situation is where we encounter a problem. The investor has already identified the replacement property they would like to purchase and entered into a contract to purchase. Still, they have not sold the apartment building nor begun a forward exchange. If the investor holds ownership of those properties simultaneously, they can no longer transact a tax-deferred exchange. This investor does not want to lose the opportunity of a new office building by waiting until the apartment building is sold, nor can they afford to lose the monthly rental earnings from the apartment building by following the timeline of a forward exchange. Therein lies the problem for some investors when considering a forward exchange.
The investor consults with their legal and tax advisors on what to do and decides to move forward with a -
Reverse Exchanges: Save and Make Money
During the 180-day window it takes to complete a Exchange Accommodation Titleholder, more commonly referred to as an EAT, and does what it says: it holds the title – nothing more. The property is then leased from the EAT, also the QI, to the taxpayer/exchanger. The EAT allows the investor to have full access to the new replacement property, also allowing access to profits from the new property right away. Let’s use an example to break down a reverse exchange and its benefits:
A commercial real estate investor owns an apartment building with a market value of $3.2 million and yields a monthly rental income of $15,000 This investor wants to upgrade their investment and purchase an office building for $5.3 million, which generates a monthly $25,000 in rental income. The investor enters into a contract to acquire the office building.
This situation is where we encounter a problem. The investor has already identified the replacement property they would like to purchase and entered into a contract to purchase. Still, they have not sold the apartment building nor begun a forward exchange. If the investor holds ownership of those properties simultaneously, they can no longer transact a tax-deferred exchange. This investor does not want to lose the opportunity of a new office building by waiting until the apartment building is sold, nor can they afford to lose the monthly rental earnings from the apartment building by following the timeline of a forward exchange. Therein lies the problem for some investors when considering a forward exchange.
The investor consults with their legal and tax advisors on what to do and decides to move forward with a -
Reverse Exchanges: Save and Make Money
During the 180-day window it takes to complete a Exchange Accommodation Titleholder, more commonly referred to as an EAT, and does what it says: it holds the title – nothing more. The property is then leased from the EAT, also the QI, to the taxpayer/exchanger. The EAT allows the investor to have full access to the new replacement property, also allowing access to profits from the new property right away. Let’s use an example to break down a reverse exchange and its benefits:
A commercial real estate investor owns an apartment building with a market value of $3.2 million and yields a monthly rental income of $15,000 This investor wants to upgrade their investment and purchase an office building for $5.3 million, which generates a monthly $25,000 in rental income. The investor enters into a contract to acquire the office building.
This situation is where we encounter a problem. The investor has already identified the replacement property they would like to purchase and entered into a contract to purchase. Still, they have not sold the apartment building nor begun a forward exchange. If the investor holds ownership of those properties simultaneously, they can no longer transact a tax-deferred exchange. This investor does not want to lose the opportunity of a new office building by waiting until the apartment building is sold, nor can they afford to lose the monthly rental earnings from the apartment building by following the timeline of a forward exchange. Therein lies the problem for some investors when considering a forward exchange.
The investor consults with their legal and tax advisors on what to do and decides to move forward with a -
Accruit Launches SaaS Offering of Exchange Manager Pro℠ Software
SaaS Offering of Exchange Manager ProSM
In 2020 and 2021, we have seen an unprecedented surge of interest in, and execution of, 1031 exchanges in all areas of the country. Qualified Intermediaries (QIs) all over America are challenged to keep up with demand for Exchange Manager ProSM reduces the time to create documents to just a few minutes, reducing the impact of such an interruption to an exchange specialist’s workflow while increasing client satisfaction.
System Notifications: Key communications such as deadline reminders, detailed next steps, and distribution of documents are all highly automated and configurable while opting in or opting out clients, advisors, referral sources, and other associated contacts as desired. Make sure all parties are aware of relevant milestones without having to maintain templates and set reminders.
Central Repository for all Exchange Documents and Other Data: Exchange Manager ProSM retains all exchange documents, system notifications, notes, and exchange data in one cloud-based location. Just a handful of clicks take you from exchanger details to exchange overview to exchange documents to fee information to sale or purchase details. -
Accruit Launches SaaS Offering of Exchange Manager Pro℠ Software
SaaS Offering of Exchange Manager ProSM
In 2020 and 2021, we have seen an unprecedented surge of interest in, and execution of, 1031 exchanges in all areas of the country. Qualified Intermediaries (QIs) all over America are challenged to keep up with demand for Exchange Manager ProSM reduces the time to create documents to just a few minutes, reducing the impact of such an interruption to an exchange specialist’s workflow while increasing client satisfaction.
System Notifications: Key communications such as deadline reminders, detailed next steps, and distribution of documents are all highly automated and configurable while opting in or opting out clients, advisors, referral sources, and other associated contacts as desired. Make sure all parties are aware of relevant milestones without having to maintain templates and set reminders.
Central Repository for all Exchange Documents and Other Data: Exchange Manager ProSM retains all exchange documents, system notifications, notes, and exchange data in one cloud-based location. Just a handful of clicks take you from exchanger details to exchange overview to exchange documents to fee information to sale or purchase details.