S.E.C. Real Estate Observer

I gave a brief overview of our private, professional fiduciary services at the last SEC marketing meeting, and have received a number of calls and emails since then asking for clarification regarding our fiduciary capabilities.

As we all know, there are very specific requirements for identifying potential replacement properties in a Delayed 1031 Exchange. The requirements seem pretty clear at first glance, but there can be all sorts of pitfalls when trying to put them into practice.

How many times have you heard, or made these comments? “If I sell my property I am going to get killed with taxes.” Those of us who own highly appreciated assets such as homes, commercial real estate and businesses, are often reluctant to sell that asset because of the capital gain tax and depreciation recapture costs associated with the sale.

It was great to see so many of you at the S.E.C. marketing meeting in Albany, NY, and we look forward to seeing you in Palm Springs in November. In the meantime, please call us for your next 1031 Exchange transaction. Our team is always ready to serve in a technical advisory capacity for 1031 Exchanges, 1033 Exchanges, 721 Exchanges, Title Holding Trusts as well as Seller Carry Back Notes and/or Deferred Sales Trusts™.

You may have heard by now that the court sided against the taxpayers in the LandAmerica 1031 Exchange bankruptcy case. The judge ruled that the 1031 Exchange funds were corporate funds — not fiduciary funds — while held by LandAmerica 1031 Exchange, and as such are a part of the bankruptcy estate and therefore subject to general creditor claims.

Thank you for the warm welcome that Kim Englert and I received at the recent S.E.C. marketing meeting in Tulsa, OK. Kim and I look forward to working with each of you on your next 1031 exchange transaction, and to serving as your technical support team and sounding board for 1031 exchange related matters.