We did not have anyone exchanging conservation easements for a few years and we've just recently handled a few of them. It seems as the economy is improving, states are freeing up funds for these conservation easements. So what is a conservation easement? It is a perpetual easement that runs with your deed and requires you to relinquish your rights to develop a piece of property, usually open space. Property owners are compensated for this easement and it is usually all taxable so a 1031 exchange can be very advantageous.

Margo McDonnell

It has been an interesting month for 1031 Qualified Intermediaries (QIs) like 1031 CORP. The idea of a PA version of an exchange had us giddy about the benefits it creates for our clients and the Commonwealth, too. Whether you are a PA resident or own property in PA, please contact your state rep to let him or her know you support a PA like-kind exchange.

Moving across the river, we learned that a bill creating a registration program for QIs has resurfaced in New Jersey. This bill was introduced last year but did not go anywhere. It would require QIs to register with the state and pay a fee and among other things require minimum insurance coverage amounts and other option safeguards to protect the exchange funds a QI holds for its clients. 1031 CORP. welcomes such legislation and the protections it provides for New Jersey residents. The insurance coverage and safeguards already in place at 1031 CORP. far exceed the requirements included in this bill. The security of our clients' exchange funds is always our top priority and we have put safeguards in place to help our clients sleep comfortably at night without worrying about their funds.

Some of the protections in place include:

• Funds deposited into a segregated, interest bearing FDIC-insured account with YOUR name and tax identification number;
• Ability to view your account activity on the bank's website;
• Account statements sent from the bank directly to you monthly;
• Your signature required before 1031 CORP. can initiate any withdrawal;
• Qualified Escrow Agreements always available at no additional charge; and
• $2,500,000 fidelity bond and $2,000,000 professional liability coverage.

Of course, 1031 CORP. will keep you posted on both of these issues. If you want updates as we learn of them, just like us on Facebook or follow us on Twitter.

I am hoping that groundhog is right and Spring is just a few weeks away. I am very ready for some warmer weather and I am sure many of you are as well.

Kind regards,