IRS Issues Ruling That Single Member Limited Partnerships Are Disregarded Entities for 1031 Exchanges - 02/27/08 01:08 PM
The IRS issued Revenue Procedure 2008-07005 that clarifies when the acquisition of a 100% interest in a limited partnership would be considered an acquisition of a "disregarded entity" and as such would be treated as an acquisition of the underlying real property interest for 1031 exchange purposes.
Private Letter Ruling 200807005
PLR 200807005 explicitly approved an arrangement where an investor who proposed to acquire like-kind replacement property in a 1031 exchange by acquiring 100% of the interest in a limited partnership that owned the like kind replacement property would qualify for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code.
Proposed … (2 comments)

Exeter to Appear on Income Property Investment Talk Radio TODAY - 02/27/08 08:36 AM
William L. Exeter appears as a 1031 exchange guest expert today on Income Property Investment Talk Radio Show hosted by Peter L. Mosca and Dean Essa to discuss evaluating and selecting your 1031 exchange Qualified Intermediary and the basics of 1031 exchanges.
Access Information
You can visit our web page at http://www.exeter1031.com/Seminars.aspx for complete access information.  Call in questions will be taken through out the broadcast, so feel free to call in with your 1031 exchange related question. 
… (0 comments)

Property Tax Issues in a Declining Real Estate Market on The Exeter Group Real Estate Talk Radio Show - 02/27/08 08:32 AM
The Exeter Group Topics and Show Dates
The Exeter Group Real Estate Talk Radio ShowTM is live each and every Monday from 12:00 noon to 1:00 PM Pacific Standard/Daylight Savings Time.  Click here to listen live on Monday. 
Monday, March 3, 2008 
Corie Maue, Owner, Prop8Pros.com is back with us again this Monday to discuss property tax issues during a declining real estate market and how you can get your property reassessed to a lower property tax base. 
Click here to listen live on Monday. 
Previously Recorded Programs
Monday, February 25, 2008
Vanessa Liddell, President, ShortSalePlan.com, joins us for the first time … (0 comments)

1031 Exchange of Vacation Homes and Second Homes - 02/22/08 10:16 AM
There has been lots of debate within the industry as to whether or not you can 1031 exchange vacation properties, second homes and properties that were formerly your primary residence.  There were many opinions being circulated and lots of misinformation. 
The Internal Revenue Service has finally issued guidance regarding the 1031 exchange of vacation property and second homes.  Here is a link to an article that we wrote BEFORE the recent guidance was issued on vacation properties: http://www.exeter1031.com/article_vacation_property.aspx.  It needs to be re-written in light of the new ruling and will be completed by early next week. 
You can read the … (0 comments)

The Exeter Group Real Estate Talk Radio Show for Monday, February 25, 2008 - 02/22/08 12:55 AM
The Exeter Group Topics and Show Dates
The Exeter Group Real Estate Talk Radio ShowTM is live each and every Monday from 12:00 noon to 1:00 PM Pacific Standard/Daylight Savings Time.  Click here to listen live on Monday. 
Monday, February 25, 2008
Vanessa Liddell, President, ShortSalePlan.com, joins us for the first time live in studio to discuss short sale processes, procedures and strategies in the present challenging real estate market.  Nathan Hanks with RealSource will be calling in from Salt Lake City, Utah to discuss commercial real estate, including the acquisition criteria that his firm uses to identify, analyze and acquire … (0 comments)

IRS Issues Safe Harbors for 1031 Exchanges of Vacation Property and Second Homes - 02/20/08 02:18 PM
IRS Issues Guidance on 1031 Exchange of Vacation Property 
The Internal Revenue Service issued guidance that provided specific safe harbors in structuring a 1031 exchange of vacation properties, second homes and conversions of primary residences.  You can read our company press release. 
IRS Revenue Procedure 2008-16
This guidance and safe harbors came in the form of IRS Revenue Procedure 2008-16.  You can read the entire Rev. Proc. 2008-16 at http://www.exeter1031.com/1031_exchange_revenue_procedure_2008_16.aspx. 
Article on 1031 Exchanges of Vacation Property
You can read our article entitled "1031 Exchange of Vacation Properties: Do They Really Qualify?"
Contact Information
You can also contact any of our 1031 Exchange … (6 comments)

Discussion on Short Sale Processes, Procedures and Strategies on The Exeter Group Radio Show - 02/20/08 12:00 AM
The Exeter Group Topics and Show Dates
The Exeter Group Real Estate Talk Radio ShowTM is live each and every Monday from 12:00 noon to 1:00 PM Pacific Standard/Daylight Savings Time.  Click here to listen live on Monday. 
Monday, February 25, 2008
Vanessa Liddell, President, ShortSalePlan.com, joins us for the first time live in studio to discuss short sale processes, procedures and strategies in the present challenging real estate market.  Nathan Hanks with RealSource will be calling in from Salt Lake City, Utah to discuss commercial real estate, including the acquisition criteria that his firm uses to identify, analyze and acquire … (2 comments)

IRS Extends 1031 Exchange Deadlines for Arkansas and Tennessee Counties - 02/17/08 11:42 PM
45 and 180 Day Extensions for Arkansas and Tennessee Counties
The IRS has issued an extension Notice for the following counties for the February 5th storms: 
Arkansas:  Baxter, Conway, Izard, Pope, Randolph, Sharp, Stone and Van Buren.
Tennessee: Benton, Hardin, Hickman, Houston, Lewis, Macon, Madison, Montgomery, Perry, Shelby, Sumner, Trousdale and Williamson.
[Note that the IRS may add additional counties later as FEMA adds counties.  If you are near the affected area, you should check the disaster announcement website for updates. The FEA will not issue announcements if more counties are added.]
Both of the following criteria must be met to get the extension under … (0 comments)

2007 IRS 1031 Exchange Tax Forms Updated - 02/17/08 01:23 PM
We have uploaded most of the 2007 IRS 1031 Exchange Tax Forms and Publications that you will need to complete your 2007 income tax return filing to our web site at http://www.exeter1031.com/FD_FormDocumentLibrary.aspx. 
The IRS is behind in updating certain forms since Congress waited to the last minute to pass certain legislation that affected the forms.  We will keep this web page updated with all current versions of the IRS 1031 Exchange Forms as they become available as well as related forms and publications that might be useful to you. 
Please feel free to contact us with any questions that you may … (5 comments)

Parties Involved in a Tenant-In-Common ("TIC") Investment Offering - 02/10/08 09:26 AM
Parties Involved in a Tenant-In-Common ("TIC") Investment Offering 
The number of parties involved in a normal tenant-in-common or "TIC" investment property transaction confuses even the most savvy real estate investor and for good reason: the structure of these investment offerings necessitates that additional parties be involved for securities and income tax law purposes. The purpose of this article is to list the major parties involved in a standard TIC investment property transaction and explain their purpose and participation.
Real Estate Exit Broker
While TIC investment properties may be purchased with available liquid cash, they are typically acquired as like-kind replacement properties as … (0 comments)

Overview of Tenant-In-Common Investment Property Interests or TICs - 02/10/08 01:33 AM
Overview of Tenant-In-Common Investment Property Interests or TICs
As a Qualified Intermediary for 1031 Exchange transactions, one of the concerns that we often hear about from Investors when structuring 1031 Exchange transactions is the difficulty in locating, identifying and ultimately acquiring suitable like-kind replacement properties within the required 1031 Exchange deadlines.
Investors often rush into an acquisition of a like-kind replacement property that is not particularly well suited for their investment goals and objectives when faced with a rapidly approaching 1031 exchange deadline.  Although the income tax benefits of completing a 1031 Exchange transaction are important, the financial and economic aspects and benefits … (0 comments)

1031 Exchanges of Timberland and/or Timber - 02/09/08 07:03 PM
1031 Exchanges of Timberland and/or Timber
The disposition or sale of timberland and unsevered timber can qualify for 1031 Exchange treatment when like-kind replacement timberland, unsevered timber or other property is acquired as part of an integrated 1031 exchange transaction.
Timberland and Unsevered Timber are Real Property
Timberland and unsevered timber, also called standing timber or stumpage, are considered to be real property for 1031 Exchange purposes.  The right to cut and remove standing timber under the provisions of a timber deed or cutting contract is classified as a contractual right or other personal property in most states.  Timber that has already … (2 comments)

The Exeter Group Real Estate Talk Radio Show for Monday, February 11, 2008 - 02/08/08 10:29 PM
Topics and Show Dates
The Exeter Group Real Estate Talk Radio Show is live each and every Monday from 12:00 noon to 1:00 PM Pacific Standard/Daylight Time. Click here to listen live on Monday. 
Monday, February 11, 2008
We had so much information left to share from last week that the dynamic duo returns to delve deeper into their topics. 
Tracy Turner, President, Chief Executive Officer, and Founder of TIC Consultants, a division of Turner Financial Group, Inc. will be back in studio to continue the discussion regarding the current commercial real estate outlook broken down by asset classes/segments. 
Chuck Wise, CCIM, … (0 comments)

1031 Exchange Instructions for Real Estate Closing and Settlement Agents - 02/08/08 10:22 PM
Here are some tips for working with a 1031 exchange. 
The Role of the Qualified Intermediary (Accommodator)
Qualified Intermediaries are responsible for (1) preparing the 1031 exchange legal agreements and related documents; and (2) holding, safeguarding and investing the 1031 exchange funds during the like-kind exchange transaction; and (3) coordinating the overall tax-deferred exchange transaction; and (4) keeping the tax-deferred exchange in compliance with all applicable 1031 exchange income tax laws, regulations, and related rulings.
Communication is Critical
Constant communication between the Qualified Intermediary and the escrow officer, closing or settlement agent is critical to the successful closing of a tax-deferred exchange.  The … (0 comments)

Related Party Issues in 1031 Exchanges - 02/07/08 09:50 PM
Related Party Issues In 1031 Exchanges
There has been considerable abuse over the years by investors who have used various "related party" strategies or techniques to defer, avoid and even evade the payment of income taxes liabilities.  1031 exchanges have not been immune to such abuse, and the Internal Revenue Service has issued rules and guidelines regarding related party 1031 exchange transactions to curb such abuse. 
The 1031 exchange related party rules or guidelines were intended by the Internal Revenue Service to prevent investors from using the 1031 exchange to shift tax basis, also called basis swapping, between properties owned by related … (0 comments)

IRS Form 8824 Guidance with a Reverse 1031 Exchange - 02/07/08 09:29 PM
The first thing you need to do throw out the term reverse 1031 exchange. It is really not a reverse 1031 exchange. A true reverse 1031 exchange would mean that you could acquire and receive title to like-kind replacement property and then subsequently sell and convey title to the relinquished property. This tax-deferred exchange structure simply does not exist. 
You can learn more about reverse tax-deferred exchanges by reading our web page entitled "Introduction to Reverse 1031 Exchanges."
Revenue Procedure 2000-37
What we do have is Revenue Procedure 2000-37 that allows you to structure a tax-deferred exchange by acquiring your like-kind replacement … (4 comments)

1031 Exchange Permissible Closing Costs - 02/07/08 09:15 PM
1031 Exchange Permissible and Non-Permissible Closing/Settlement Costs Tax-deferred like-kind exchange proceeds can be used to pay for certain routine permissible transaction, settlement and closing costs related to the disposition of the relinquished property and/or the acquisition of the like-kind replacement property without creating an income tax liability for the Investor.
Other expenses, financing costs and settlement charges can be paid from the tax-deferred like-kind exchange proceeds as outlined above, but will be considered to be cash boot received by the Investor and may therefore result in an income tax liability (non-permissible expenses and closing costs).  In certain situations, cash boot paid can … (4 comments)

SEC Issues Proposed Exemption for TIC Properties - 02/07/08 09:09 PM
Exeter News Wire
Media Contact:William L. ExeterPresident and Chief Executive OfficerExeter 1031 Exchange Services, LLC(619) 615-4210
FOR IMMEDIATE RELEASE
SEC Issues Proposed Exemption for TIC Properties
Certain Realtors May Be Compensated by Securitized TIC Sponsors
The U.S. Securities and Exchange Commission (SEC) has issued a proposed exemption that would authorize securitized tenant-in-common (TIC) investment property sponsors to compensate certain licensed real estate professionals involved in tenant-in-common (TIC) investment property transactions.
You can learn more about this at http://www.exeter1031.com/news_sec_tic_property_exemption.aspx.
… (0 comments)

1031 Exchange Seminar for San Diego Rainers with DRE Credit - 02/05/08 12:48 AM
1031 Exchange Seminar in San Diego
See all of our 1031 exchange seminar programs.
Basic to Intermediate Level 1031 Exchange Seminar 
This is a basic to intermediate level workshop on forward, reverse and improvement (build-to-suit or construction) 1031 exchange transactions pursuant to Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations.
Educational Workshop Content
The educational workshop will begin with an introduction to various tax-deferral and tax-exclusion strategies, including combining Section 1031 with Section 121.  The discussions will focus on the requirements, structures, processes, strategies, and compliance issues necessary to successfully complete a tax-deferred, like-kind exchange transaction. 
We … (0 comments)

REVERSE 1031 Exchange Series: Post No. 13 - 02/05/08 12:33 AM
There are certain pre-reverse 1031 exchange planning issues that should be anticipated to make the planning process go smoother.  The pre-planning will vary from transaction to transaction depending upon the circumstances, but here are some items that you might expect. 
Pre-Exchange Due Diligence
Before setting up a reverse tax-deferred like-kind exchange, the Exchange Accommodation Titleholder will require the Investor to provide the following documents and information:
Some EATs/QIs will required the Investor to submit Financial statements and/or Federal income tax returns for the last two or three income tax years in order to demonstrate financial abiity to indemnify the EAT/QI from potential liability; A … (0 comments)

The Exeter Group Real Estate Talk Radio Show for Monday, February 4, 2008 - 02/04/08 12:11 AM
Topics and Show Dates
The Exeter Group Real Estate Talk Radio Show is live each and every Monday from 12:00 noon to 1:00 PM Pacific Standard/Daylight Time. Click here to listen live on Monday.
Monday, February 4, 2008
Tracy Turner, President, Chief Executive Officer, Founder of TIC Consultants, a division of Turner Financial Group, Inc. will be back in studio to continue the discussion on evaluating and selecting TIC investment properties with an emphasis on due diligence and what to look for in the Private Placement Memorandum ("PPM") when evaluating TIC properties.
Chuck Wise, CCIM, President, Chief Executive Officer, Founder, Wise Investments, Inc. and Senior … (2 comments)

REVERSE 1031 Exchange Series: Post No. 12 - 02/03/08 12:45 AM
Issues with Reverse Tax-Deferred Like-Kind Exchanges
The costs surrounding reverse tax-deferred like-kind exchanges are considerably more than those for a forward tax-deferred like-kind exchange transaction.
Fees for reverse tax-deferred like-kind exchange transactions are higher than fees for forward, delayed tax-deferred like-kind exchange transactions primarily due to the significantly increased risk that is assumed by the Exchange Accommodation Titleholder (EAT) when acquiring, holding and "parking" legal title to the Investor's relinquished or replacement property.
The Investor will also incur additional title insurance, environmental, loan, legal, property, casualty and liability insurance, and escrow/closing costs depending on the structure of the reverse tax-deferred like-kind exchange.
There is … (4 comments)

REVERSE 1031 Exchange Series: Post No. 11 - 02/02/08 08:46 PM
Issues with Exchange Last Parking Structure
Cash Boot Potential: If the amount of the down payment advanced by the Investor to the Exchange Accommodator Titleholder (initial equity) used to acquire the like-kind replacement property is less than the equity generated from the sale of the relinquished property the Investor may have accidentally created cash boot and will recognize depreciation recapture and/or capital gain income tax liabilities to the extent of the cash boot. (Note: To qualify for 100% tax-deferral in a tax-deferred like-kind exchange, the equity in the like-kind replacement property must be equal to or greater than the equity in the … (0 comments)

REVERSE 1031 Exchange Series: Post No. 10 - 02/02/08 08:44 PM
Exchange First Parking Structure - Parking Title to Relinquished Property
In an Exchange First parking structure the relinquished property is acquired, held or parked by the Exchange Accommodation Titleholder and a simultaneous or concurrent tax-deferred like-kind exchange transaction is completed by selling (transferring or conveying) the relinquished property to the Exchange Accommodation Titleholder and simultaneously acquiring and closing on the like-kind replacement property.
The relinquished property may not be transferred to a disqualified entity such as a related party of the Investor or to an agent of the Investor. When you find a buyer for the parked relinquished property, the Exchange Accommodation Titleholder … (0 comments)

REVERSE 1031 Exchange Series: Post No. 10 - 02/02/08 08:43 PM
Exchange First Parking Structure - Parking Title to Relinquished Property
In an Exchange First parking structure the relinquished property is acquired, held or parked by the Exchange Accommodation Titleholder and a simultaneous or concurrent tax-deferred like-kind exchange transaction is completed by selling (transferring or conveying) the relinquished property to the Exchange Accommodation Titleholder and simultaneously acquiring and closing on the like-kind replacement property.
The relinquished property may not be transferred to a disqualified entity such as a related party of the Investor or to an agent of the Investor. When you find a buyer for the parked relinquished property, the Exchange Accommodation Titleholder … (0 comments)

REVERSE 1031 Exchange Series: Post No. 9 - 02/02/08 08:41 PM
This post will delve much deeper into the Exchange Last parking structure.   
Exchange Last Parking Structure - Parking Title to the Replacement Property
The preferred reverse tax-deferred like-kind exchange strategy is the Exchange Last Structure where the Exchange Accommodation Titleholder acquires and parks title to the replacement property.
This structure provides the Investor with a great deal more flexibility in planning the acquisition and financing of the like-kind replacement property because the actual tax-deferred like-kind exchange has not yet occurred.  We do not care at this point if the Investor has exchanged or traded equal or up in value, has reinvested his equity (cash) … (4 comments)

REVERSE 1031 Exchange Series: Post No. 8 - 02/02/08 08:27 PM
Reverse Tax-Deferred Like-Kind Exchange Structures
I have addressed the two reverse 1031 exchange structures in my prior posts. Investors must decide whether to park the replacement property or relinquished property with the Exchange Accommodation Titleholder.  This decision will vary from transaction to transaction and not all Qualified Intermediaries/Exchange Accommodation Titleholders will administer both structures. 
It will typically depend on whether the lender will allow the Exchange Accommodation Titleholder to acquire and park title to the replacement property when the lender is also using the same property as collateral for the financing.
There are other factors that may play a role in determining which property … (0 comments)

REVERSE 1031 Exchange Series: Post No. 7 - 02/02/08 08:21 PM
Reverse 1031 Exchange Structures
As I previously discussed in post number 6, the challenge in structuring your Reverse 1031 Exchange is deciding which property will be acquired and held or "parked" by the Exchange Accommodation Titleholder ("EAT").  The structure selected by you will depend on whether there is financing involved and which property your lender will allow Exeter Reverse 1031 Exchange Services, LLC to acquire and hold or park title to.
The two structures are commonly referred to as Exchange Last and Exchange First because the simultaneous 1031 exchange occurs either at the beginning (Exchange First) or at the end (Exchange Last) … (0 comments)

California FTB Issues Notice Regarding Like-Kind Exchanges of TIC Interests - 02/02/08 07:57 PM
Exeter News Wire
Media Contact:William L. ExeterPresident and Chief Executive OfficerExeter 1031 Exchange Services, LLC(619) 615-4210
FOR IMMEDIATE RELEASE
FTB Issues Notice Regarding Like-Kind Exchanges of TIC Interests
California FTB Says Revenue Procedure 2002-22 Only Minimum Requirements
The California Franchise Tax Board issued Notice 1107_02 in November 2007 indicating that they are seeing a trend in tax adjustments from Like-Kind Exchanges of TIC Interests pursuant to Section 1031 of the Internal Revenue Code. 
The FTB stated that a "Tenant-in-Common (TIC) interest is considered like-kind property for purposes of an IRC Section 1031 exchange.  A partnership interest, however, is not treated as such under IRCSection 1031 … (0 comments)