1031 Identifications: The Devil Is in the Details

cheating For some Exchangers, identifying replacement property can be the most stressful part of the transaction. This article is intended to simplify the identification process by explaining the requirements and providing some tips to provide peace of mind.
The 45-Day Identification Period requires you to identify, in writing, replacement property. The identification must be sent to 1031 CORP. before midnight of the 45th day after the relinquished property is conveyed to the buyer. If multiple assets are sold, the 45 days are triggered with the first conveyance. The 45-days are based on calendar days and not extended if the 45th day falls on a Saturday, Sunday or legal holiday.
45-Day IDs that Make
or Break a 1031
Tips to Prevent a Costly Mistake

clock - deadline One of the most important requirements of a successful 1031 exchange is the proper identification of replacement property within 45 days of when the relinquished property is transferred to a buyer. While this requirement seems simple to satisfy, for many, it creates a great deal of stress for a variety of reasons. Following are the most common issues that pop up and tips on how to avoid unnecessary worry.
Maximizing your Time
There is no doubt 45 days fly by but there is no reason why you should wait until your relinquished property closes before starting to look for desirable replacement property. On average, there is at least 60  - 90 days between the date an Agreement of Sale is signed and when a property closes. Utilize that time to begin searching for replacement property. The replacement property can be acquired immediately after the relinquished property closes.
2016 Exchange Reporting Guide

The information in this guide is designed to assist you and/or your tax preparer with the reporting requirements of your 1031 tax-deferred exchange.
Click here to download our PDF version of the 2016 Exchange Reporting Guide.
Top 10 Reasons to Preserve Section 1031
  1. Section 1031 Like-Kind Exchanges (LKEs) encourage investment and reinvestment in U.S. assets, and makes it easier for taxpayers to relocate or upgrade into assets that better meet their business needs.
  2. §1031 was enacted in 1921 for two primary purposes:
    1) to avoid unfair taxation of ongoing investments in property and 2) to encourage active reinvestment.
  3. §1031 has survived numerous tax reform efforts for almost 100 years because 1) it is based on sound tax policy that prevents taxation of cash flow when there is "continuity of investment" and no cashing out, and 2) it stimulates the economy through transactional activity.
  4. LKEs have a substantial economic stimulus effect on a myriad of industries, including real estate, contractors, title insurers, lenders, equipment dealers/manufacturers, transportation, energy and agriculture.
Trending this Month . . .
Selling Multiple Relinquished Properties ROW OF HOUSES
1031 CORP. has seen an increase in 1031 exchange transactions involving the sale of multiple relinquished properties followed by the acquisition of multiple replacement properties. These Exchangers seem to prefer having multiple smaller rental properties and have been successful with this investment strategy.

Margo McDonnell of 1031 CORP. Begins Second Year on Board of Suburban West REALTORS® Association

Collegeville, PA, January 31, 2017 - 1031 CORP. -Margo McDonnell, CES ®, CRE ®, President and CEO, 1031 CORP. of Collegeville, Pennsylvania has begun the second year of a two-year term on the Suburban West REALTORS ® Association (SWRA) Board of Directors. Margo and fellow directors took the oath of office at the Board Installation held at The Ballroom at Ellis Preserve in Newtown Square, Pennsylvania on January 19, 2017. Margo serves as the affiliate representative.
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Thursday, February 2, 2017 12:00 PM ET

Tuesday, February 14, 2017 12:00 PM ET

Thursday, February 16, 2017 12:00 PM ET

Tuesday, February 21, 2017 12:00 PM ET

Article Exchange
Following are articles related to 1031 exchanges, taxes, real estate and related topics you may find of interest.
January 19, 2017
January 24, 2017
If you have an article you would like to share, please forward to Margo McDonnell, CRE, CES® and we'll include it in next month's reading list.
1031 CORP. Marks 26th Anniversary

January 7th marked the 26th anniversary of 1031 CORP. We are grateful for your loyalty and trust. We could not have reached this milestone without you.
Thank you!
Message from our President

Margo McDonnell
Dear Friends,
I spent last week in Washington, D.C., along with peers from the Federation of Exchange Accommodators (FEA), and we visited many members of Congress and their staff. Both Republican and Democratic members of the House Ways & Means Committee and the
Margo and other members of the FEA waiting in the Capitol for a meeting with Senator Mitch McConnell's staff.
Senate Finance Committee. While it seems the House will not be able to tackle tax reform until later in the year, they are working on the bill NOW. They may not have hearings to seek input from taxpayers so Hill visits like these and letters and calls from constituents are imperative to share our concerns with the House Republican Blueprint for Tax Reform. I urge you to send a letter to your U.S. Representative and Senators and tell them to preserve section 1031 in its current form.
Warm Regards,

Additional Resources for Allied Professions
1031 CORP. has recently launched its quarterly newsletters for
  • Real Estate Professionals
  • Attorneys and Accountants
  • Title and Escrow Officers
To sign up for our mailing list, click here.
About 1031 CORP.
Serving as a nationwide qualified intermediary for 1031 tax-deferred exchanges since 1991, 1031 CORP. strives to provide a superior exchange experience for our customers and their advisors. We provide our customers with enhanced security of funds, knowledgeable exchange professionals and a commitment to keep the exchange process simple for our customers and their advisors. Our Exchange Team, which includes Certified Exchange Specialists®, has the experience and expertise to facilitate even the most complex exchange transaction, including reverse, improvement and personal property exchanges.

Additional information can be found at www.1031CORP.com.
In This Issue

Margo McDonnell

Margo McDonnell, CRE, CES®
Certified Exchange Specialist®
President and CEO
1.800.828.1031 ext. 212
Mobile: 610.680.6896
Find me on Facebook
View my profile on LinkedIn

1031 CORP. Logo

Sue Umstead, CES ® 
Certified Exchange Specialist®
Senior Vice President
1.800.828.1031 ext. 208
Mobile: 610.755.8520

Find me on Facebook
View my profile on LinkedIn

1031 CORP. Logo

Marissa LoCascio, CES ®
Certified Exchange Specialist®
Vice President, Exchange Manager
1.800.828.1031 ext. 210
Mobile: 610.742.4351

Find me on Facebook
View my profile on LinkedIn
Cindi Platt-Elliott
Exchange Officer
1.800.828.1031 ext. 216
Mobile: (610) 551-2033 
Marilyn DeAngelis
Exchange Officer
1.800.828.1031 ext. 207
Mobile: 973.879.3846

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