Exchanging Vacation Homes = Huge Savings
Planning and Preserving Wealth
 After years of uncertainty as to whether or not a vacation home could be exchanged under section 1031, the IRS provided highly anticipated guidance in early 2008. The problem though was that no one qualified!
The guidance was in the form of a "safe harbor" provided in Revenue Procedure 2008-16 and creates the ability for vacation home owners to exchange for another vacation home. To qualify for the protection of the "safe harbor," you would have to follow all of the rules which require you to rent the property for two years before you sell the old property and two years after you buy the replacement property while keeping your personal use to almost nothing. Most vacation home owners, especially those with resort properties along the East Coast, want to use their property often and have no desire to rent their property not even for just fourteen days annually.
Join us on Thursday, October 13 at 12 noon ET for our wealth-building webinar, "1031 Exchanges of Vacation Homes." This webinar will discuss the sale of vacation homes and when they may qualify for a 1031 tax-deferred exchange. We'll also discuss planning opportunities.
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1031 & Tax Reform
A limitation of Section 1031 like-kind exchanges was included among revisions to Secretary Hillary Clinton's tax platform on Thursday, September 22, 2016. The policy changes are aimed at reforming capital taxation, according to her campaign website. The proposed limitation on Section 1031 is believed to be similar to the Administration's FY2017 budget proposal. President Obama's FY2017 proposal would limit capital gains deferral to $1 million per taxpayer per year for both real and personal property and exclude art and collectibles from eligibility. According to the Center for a Responsible Federal Budget, the inclusion of this similar limitation would be expected to raise more than $35 billion dollars that would go towards funding Secretary Clinton's proposals.
Both campaigns' tax plans continue to evolve. However, the Trump campaign has not yet released many details of his tax proposals, and there is some ambiguity in what has been made public thus far.
Like-Kind Exchange Letters Sent to Clinton, Trump Campaigns
FEA Is Signer Among Real Estate and Land Conservation Associations
The Federation of Exchange Accommodators (FEA) was among 26 groups that signed letters sent to the Hillary Clinton and Donald Trump presidential campaigns explaining the benefit of real estate exchanges for small businesses, farmers, ranchers, and for use in land conservation. The timing of these letters is important, as both campaigns are developing and revising tax plans. The FEA is the national trade association for 1031 exchange practitioners and 1031 CORP. has been a member since 1995.
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Margo McDonnell Remains Committed to 1031 Association, Industry
Concludes Term as FEA President
 Margo McDonnell, CES®, president of 1031 CORP., completed her one-year team as president of the Federation of Exchange Accommodators (FEA), the national trade association for 1031 practitioners like 1031 CORP. Margo was also reelected by the general membership for another three-year term on the FEA Board of Directors where she has served since 2011 and previously from 1997 thru 2008. Margo's service was recognized by incoming FEA president, Steve Chacon, CPA, CES®.
Presents 2016 President's Award
As FEA President, Margo had the honor of presenting the 2016 President's Award and she chose to  recognize nine peers who have passionately committed significant time and energy to help preserve section 1031 and the role of the qualified intermediary. Together, these fellow FEA members have created much awareness on Capitol Hill of the benefits of section 1031 for real estate investors and business owners as well as the economy. Margo and fellow FEA member, Bradley Penner, CPA, CES® were the first recipients of the FEA President's Award in 2003.
See Press Release
Margo McDonnell CES® Award Presented
The Margo McDonnell Certified Exchange Specialist® Perpetual Award for Outstanding Service was presented by  CES® Co-Chair, Pierre Priestley, Esq., CES®, to David A. Brown, Esq., CES® for his tireless efforts to make the agriculture industry realize the importance of section 1031 and his crusade to bring the American Farm Bureau and other agricultural groups in as coalition members. The award was first presented to Margo McDonnell in 2008 in recognition of her efforts to create the CES® Certification and Continuing Education Program. See Press Release
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Wealth Building Webinars
Join us for our complementary Wealth Building Webinar Series designed to help you build and preserve wealth.
Register Today!
Thursday, October 6, 2016 12:00 PM ET
Thursday, October 13, 2016 12:00 PM ET
Thursday, October 20, 2016 12:00 PM ET
Thursday, October 27, 2016 12:00 PM ET
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Webinar: Cost Segregation
and 1031 Exchanges:
A Useful Combination
Monday October 17, 2016
12 - 2pm | 2.0 CPE Credits
1031 Exchanges have grown in popularity in recent years. New legislation has expanded the utility of the cost segregation study, making the analysis more useful, and more powerful, than ever. Commercial real estate professionals have begun to explore the utility of combining both strategies.
On Monday October 17th, we invite you to join us for a
unique learning experience. 1031 CORP. President Margo McDonnell, CES®, will be joined by Bruce Johnson, MBA, CEM, a founding Partner at Capstan Tax Strategies. With over 20 years of experience in real estate and engineering, Bruce will provide valuable insight into the utility of performing a 1031 Exchange in the context of a cost segregation study. The presenters will jointly examine the feasibility of combining these strategies, considering depreciable basis, advantageous timelines, and the question of "like-kind" exchanges when properties have significantly different MACRS class lives.
This presentation will be beneficial to commercial real
estate developers and operators as well as tax professionals.
Please click here, to sign up for this informative event. We look forward to having you part of the conversation!
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Trending this Month...
Free and Clear
Recently, we have seen an increase in the  number of clients exchanging properties they own free and clear of debt. Many of these property owners waited a long time before deciding to pull the trigger on their long-held property but consumer confidence continuing to rise, historic low mortgage rates holding steady and increasing property values are motivating real estate investors. Some are choosing to buy replacement property with no debt and others are opting to leverage their equity and purchase more valuable property.
View All Recent Trends
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Article Exchange
Following are articles related to 1031 exchanges, taxes, real estate and related topics you may find of interest
Realtor.com
September 6, 2016
If you have an article you would like to share, please forward it to Margo McDonnell, CES® and we'll include it in next month's reading list.
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Message from our President
Dear Friends,
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The 1031 CORP. Team takes a break at the FEA Conference to pose together. Pictured from left to right: Rich Heller, Emily Carty, Marilyn DeAngelis, Margo McDonnell, Sue Umstead & Joe Szajnecki |
September kicked off a busy
time of year for the 1031 CORP. Exchange Team as we continue our commitment to continuously enhance our knowledge of section 1031 and related tax law. Six members of our Exchange Team recently attended the 2016 Annual Conference of the Federation of Exchange Accommodators (FEA), the national trade association for 1031 exchange practitioners, where they completed 11.5 -
14.5 hours of continuing education. Two other Exchange Team members will attend another industry conference in a few weeks to complete 12 CE credit hours. Additionally, everyone will listen to at least a dozen 50-minute webinars offered thru the FEA over the next three months. Internally, 1031 CORP. regularly schedules "1031 Boot Camps" presented by senior members of our team to augment the CE mentioned earlier. We want to be sure our Exchange Team is always well prepared to handle any exchange situation that comes up while working with our Exchangers.
Effort to Bring 1031 to Pennsylvania
On a different note, I am continuing to work with the Pennsylvania Association of REALTORS® to help get PA House Bill 700 passed and bring like-kind exchanges to the only state with an income tax regime that does not recognize exchanges.
Warm Regards,
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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.
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Margo McDonnell, CES®
Certified Exchange Specialist®
President
1.800.828.1031 ext. 212
Mobile: 610.680.6896
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Sue Umstead, CES
®
Certified Exchange Specialist®
Senior Vice President
1.800.828.1031 ext. 208
Mobile: 610.755.8520
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Marissa LoCascio, CES
®
Certified Exchange Specialist®
Vice President, Exchange Manager
1.800.828.1031 ext. 210
Mobile: 610.742.4351
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Cindi Platt-Elliott
Exchange Officer
1.800.828.1031 ext. 216
Mobile: (610) 551-2033
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Marilyn DeAngelis
Exchange Officer
1.800.828.1031 ext. 207
Mobile: 973.879.3846
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