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Tax Deferred Exchange Seminar

Intermediate Tax Deferred Exchange Seminar
This 1031 exchange seminar is an intermediate seminar on regular forward, delayed, reverse and improvement (build-to-suit or construction) tax-deferred like-kind exchanges pursuant to Section 1031 of the Tax Code and Section 1.1031 of the IRS Regulations.

Tax Deferred Exchange Seminar Content
This educational tax-deferred exchange program 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 1031 exchange transaction.

Should You Attend?
Yes, if you are interested in gaining a deeper understanding of the processes and requirements for completing a successful tax-deferred like-kind exchange transaction, including investment property owners (taxpayers/investors), accountants, attorneys, corporate officers, certified financial planners and real estate agents and brokers (Realtors©).

Registration Required
Click here for more complete details and to reserve your space.

The Deferred Sales Trust: Tax Deferred Solution?

Deferred Sales Trusts(TM) or DSTs very well could be the next tax-deferred solution that you'relooking for to assist you with the sale of an asset or assets. You have most likely heard about the 1031 exchange, which requires that you dispose of an asset or assets and subsequently acquire another asset or assets.

But, what about other taxpayers that do not want to purchase another asset upon the sale of their existing asset?

Seller Financing or Promissory Notes
You could structure the sale of your asset with a seller carry back promissory note. Seller carry back promissory notes are taxable pursuant to Section 453 of the IRC. However, you are taking a big risk that the purchaser of your assets may not be able to make good on their promissory note or installment note and end up defaulting on you.

The Deferred Sales Trusts or DSTs
The Deferred Sales Trust could be used to defer or postpone the recognition and payment of your capital gain taxes on the sale of your asset or assets. You would sell your asset through the Deferred Sales Trust so that you do not have to pay taxes immediately, and you would be able to receive periodic payments over time.

This reduces your risk related to the potential default on the promissory note because the buyer must pay for the asset or assets immediately. The Deferred Sales Trust would receive your net sales proceeds at the closing of your sale and may defer the payment of your capital gain taxes by preventing your receipt of the sales proceeds into the future when your periodic annuity payments are disbursed to you.

No Guidance from the IRS
It is important to understand that some income tax advisors have questioned the validity of Deferred Sales Trusts or DSTs and that the IRS has still not yet ruled on them. There are numerous requests for Private Letter Rulings (PLRs) pending at the IRS, and we wait for word of these PLRs to see how effective the Deferred Sales Trust will turn out to be.

The Private Annuity Trust
Deferred Sales Trusts have a close member of the family referred to as the Private Annuity Trust or PAT for short. The Private Annuity Trust or PAT was used to defer the payment of taxes by moving the asset(s) being sold into the PAT before the sale of the asset or assets.

The Internal Revenue Service issued a ruling against Private Annuity Trusts as a tax-deferral tool or strategy in October 2006.

The Deferred Sales Trust was designed by the Estate Planning Team to fill the void or gap created by the demise of the Private Annuity Trust. We will keep you informed and updated as we hear more regarding the Deferred Sales Trusts and the pending requests for Private Letter Rulings.

Premier Lending Services on the Big Island of Hawaii

Hawaiian 1031 Exchange Operations

Many of you know that Exeter 1031 Exchange Services, LLC opened a branch office location on Hawaii under the supervision of Mellanese Lofton toward the beginning of 2008. This new 1031 exchange operation was an important move for Exeter so that we can take advantage of the real estate market when it begins to turn around and normalize later next year.

Luxury Home Lending Operation

I would like to introduce everyone to one of our our Hawaiian Island partners - Island Home Capital. Island Home Capital has been instrumental in providing high end lending services on the Big Island of Hawaii since 1997. They are one of Hawaii's leaders in luxury home lending and have recently expanded into the western United States. They can quickly help you decide which mortgage program would suit your needs best and get started with the process right away.

Please feel free to contact Mellanese Lofton, Esq., and Branch Manager of Exeter 1031 Exchange Services, LLC for a personal introduction to Island Home Capital.