Fed Fund Interest Rate Remains Unchanged

Fed Leaves Short-Term Interest Rates The Same

The Federal Reserve Board voted today to leave the closely watched Fed Funds interest rates the same at 2.00%. This is the first time that the Federal Reserve has not lowered rates since the summer of 2007.

Federal Reserve Concerned Over Inflation

Concern was also expressed about inflation and inflation expectations by the Federal Reserve, but there was no hint of an imminent rise in the Fed Funds interest rates at this point in time.

1031 Exchange Workshop in Irvine, California

1031 Exchange Workshop

This is not just another 1031 exchange seminar. It's a 1031 exchange workshop where you can roll up your sleeves and learn about the requirements, structures, processes, strategies, and compliance issues necessary to successfully complete a 1031 exchange transaction.

The 1031 Exchange Institute Launched

There is a lot of information on the internet today regarding 1031 exchange transactions, but the majority of it is more sales and marketing in look and feel than educational and technical in nature.

We thought it was time to roll out a weblog that addressed the technical, educational, and resource demands of consumers today. So, we rolled out The 1031 Exchange Institute. Please visit the new weblog and let us know what we can do better so that it is more useful for you.

How Can I Get An Extension For My 45 Day ID Period?

I hear this question virtually each and everyday. It's usually in a state of panic because the 1031 exchange investor is running out of time to identify his or her replacement property.

The 45 calendar day deadline to identify replacement property is a very short period of time and can be difficult, so 1031 exchange clients should start looking for replacement properties as soon as they know they are going to sell and structure a 1031 exchange.

Tax Deferred Exchange Due Dates Are Law; Not Regulations

Unfortunately, there is no way to get an extention of time for your 1031 exchange deadlines or due dates, unless you or the subject property is affected by a natural disaster such as a fire, flood, hurricane, etc.

The 1031 exchange deadlines or due dates are actually part of the tax code (laws) and are not part of the IRS Regulations (i.e. Section 1031 of the Internal Revenue Code), and can not be extended without an act of Congress. The IRS does not even have the ability to grant an extension, alter or postpone the 45 or 180 calendar day deadlines.

Beyond The 1031 Exchange: Cost Segregation Analysis

You've completed your 1031 exchange. You've deferred the payment of your income taxes. Now what?

Have you thought about doing a cost segregation analysis or study? It could provide you with significant income tax benefits in the form of higher depreciation write offs.

Cost Segregation Analysis

The general theory here is that you have acquired an interest in real property, but some of the real estate can actually be broken down into personal property components such as HVAC units, etc.

The cost segregation analysis does just that. A cost segregation provider studies the components of the building and then segments it into real property and personal property interests.

Increased Depreciation Benefits

Personal property has a much shorter life span, and as such, has a much shorter depreciation schedule. You can depreciate personal property much faster than you can real property and create more in income tax write offs to shelter more of your income.

Future Issues

The decision to complete this cost segregation analysis is not an easy one because the cost segregation analysis can also complicate matters later. For example, you have just completed a 1031 exchange and acquire "real estate." But, you then complete a cost segregation analysis and split it into real estate and personal property. Later you go to sell the property and the question is what are you selling? Is it real estate? Is it personal property? Is it both? Will the IRS allow you to have your cake and eat it too?

Financial and Tax Advisors

Always consult with your advisors before completing a cost segregation analysis to determine if the outcome is more beneficial than the long-term issues.