|Message from our President
With the Republican sweep of the November elections, the likelihood that major tax reform legislation will be introduced and passed in 2017 has become a near certainty.
The House of Republicans introduced their Blueprint for tax reform - A Better Way - in June.
The Blueprint will allow taxpayers to immediately expense all capital asset acquisitions, including land improvements, but not land. As an offset to immediate expensing, taxpayers will no longer be able to deduct their net interest expense.
If the Blueprint becomes law, there is no guarantee that Section 1031 will be preserved. Farmers, ranchers and investors who own and develop land will not be able to expense their land purchases, nor will they be able to exchange their land as they can today.
The repeal or limitation of Section 1031 exchanges will result in negative unintended consequences for the economy, the national real estate market and significant job loss nationwide. To learn more about the negative impact on the economy of repealing or limiting 1031 exchanges, click on the links and studies below:
Retaining Section 1031 is critical because the provision facilitates deal flow in real estate transactions and helps eliminate a "lock-in" effect that would otherwise occur absent 1031. Section 1031 also encourages capital formation, encourages development and property improvements and stimulates economic activity.
The time to act is NOW as legislation is being drafted and will likely be introduced shortly after the new Congress convenes in January. Please visit 1031taxreform.com to send a letter today.
Thank you for your support. Happy Holidays!
I do not own real estate so a 1031 repeal will not hurt me.
FACT: Every day, American consumers benefit from 1031 exchanges. Here are a few examples:
Purchasing Products or Services: Americans pay less for products and services because the business can use 1031 exchanges to replace equipment rather than using capital which helps keep costs lower. The products are then delivered by a company that probably exchanges its delivery fleets which keeps costs down (and keeps the fleets turned over regularly and ensures the vehicles on the road are better maintained). Farmers regularly use section 1031 to acquire better farmland and replace farm equipment and livestock.
Qualified Intermediaries Celebrate 25 Years of Section 1031 Like-Kind Exchange Compliance
and Taxpayer Protections
Professional QIs Are Central to 1031 Exchanges and Help a Wide Variety of Asset Owners
Las Vegas, Nevada (PRWEB) September 15, 2016
The U.S. Treasury rules giving rise to the like-kind exchange "Qualified Intermediary" turn 25 this year. Established by Treasury safe harbor regulations in 1991, professional Qualified Intermediaries (QIs) promote compliance with the law and make the benefits of like-kind exchanges, also known as 1031 exchanges, accessible to business and property owners nationwide.
Happy Holidays from
On behalf of the entire 1031 CORP. Team,
We wish you happy holidays and
a happy, healthy, prosperous New Year.
Cheers to many more years of 1031!
| Use Section 1031 to Accomplish your 2017 Goals
As the year winds down, many of us are beginning our annual list of resolutions and evaluating our goals. For some, our goals might include the purchase of a vacation home, diversify our real estate portfolio, increase our revenue stream, retire and maybe even find more time to enjoy life. Yes, they all sound great but for those that currently own investment property, a 1031 exchange may help you accomplish these goals!
Acquire a Vacation Home
Today's market conditions are providing incredible opportunities that may not be here when you are ready to buy a vacation home in a few years. While interest rates are starting to tick upwards, they are still near historic lows and make properties that were once out of reach now viable. While you cannot acquire a true vacation home directly through a 1031 exchange, you can acquire a property that would be used as a rental for several years and then converted into your vacation home. Exchange an investment property for another rental in the resort area of your choice. Use the replacement property as a rental for at least two years while minimizing your personal use and then you can convert it to your vacation home.
Margo McDonnell of 1031 CORP. Awarded the CRE Credential from The Counselors of Real Estate
Collegeville, Pennsylvania, December 20, 2016 - 1031 CORP. - Margo McDonnell
CRE, President and CEO, 1031 CORP. of Collegeville, Pennsylvania has been awarded the CRE® (Counselor of Real Estate) credential by The Counselors of Real Estate®, an international group of high profile real estate practitioners who provide expert advisory services to clients on complex real property and land-related matters. The credential was awarded at The Counselors' Fall Annual Convention in Boston.
Trending this Month . . .
Buying Replacement Property in an LLC
While there is a same taxpayer requirement when completing a 1031 exchange, it is possible to acquire the replacement property in the name of a limited liability company (LLC) provided the LLC is a single member LLC and the sole member is the same taxpayer who sold the relinquished property. To be considered a pass-thru entity for tax purposes, the LLC must also elect to be treated as a disregarded entity. Some taxpayers like the liability protection of an LLC while some lenders are requiring it.
Wealth Building Webinars
Join us for our complimentary Wealth Building Webinar Series designed to help you build and preserve wealth.
Thursday, January 7, 2017 12:00 PM ET
Tuesday, January 12, 2017 12:00 PM ET
Tuesday, January 19, 2017 12:00 PM ET
Thursday, January 21, 2017 12:00 PM ET
Following are articles related to 1031 exchanges, taxes, real estate and related topics you may find of interest.
November 11, 2016
November 21, 2016
November 22, 2016
November 23, 2016
December 6, 2016
December 22 2016
(note: first published by Forbes.com on December 21, 2016)
If you have an article you would like to share, please forward it to Margo McDonnell, CRE, CES® and we'll include it in next month's reading list.
|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.
Margo McDonnell, CRE, CES®
Certified Exchange Specialist®
President and CEO
1.800.828.1031 ext. 212
Sue Umstead, CES
Certified Exchange Specialist®
Senior Vice President
1.800.828.1031 ext. 208
Marissa LoCascio, CES
Certified Exchange Specialist®
Vice President, Exchange Manager
1.800.828.1031 ext. 210
1.800.828.1031 ext. 216
Mobile: (610) 551-2033
1.800.828.1031 ext. 207
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