Reporting a 1031 Exchange to the IRS

It is well past the deadline to file your personal income tax return for the 2007 income tax year. You should have filed it by April 15, 2008 unless you filed for an extension of time to file. If not, you still have time to do so. Here is the down and dirty.

Receiving Lots of Tax Related Questions Regarding 1031 Exchanges

However, I have been receiving a lot of calls over the last few weeks from real estate investors as well as accountants, CPAs, enrolled agents and tax attorneys asking when and how to report their client's 1031 exchange for income tax purposes.

We have a lot of real estate investors that are operating under an extension of time to file their Federal income tax returns and who are just now getting around to the fun process of completing and filing their Federal income tax returns and reporting their 1031 exchange transaction for last year.

Reporting Your 1031 Exchange to the IRS

Your should report your 1031 exchange transaction in the year in which the disposition or sale of your relinquished property closed. For example, if you closed on the sale of your relinquished property in FYE 2008 and subsequently bought your like kind replacement property in FYE 2009 your 1031 exchange should be reported on your FYE 2008 Federal income tax return even thought your 1031 exchange was not completed until 2009.

It is also very, very importnat that you file an extension of time with the IRS to file and complete your Federal income tax return, then you must complete your 1031 exchange transaction, and finally you must file your Federal income tax return with the IRS and report your 1031 exchange transaction on IRS Form 8824 if your 1031 exchange transaction straddles two (2) income tax years.

You can review more about the 1031 exchange deadlines.

You can read a lot more about reporting your 1031 exchange for IRS purposes on our website at http://www.exeter1031.com/reporting_1031_exchange_for_income_taxes.aspx including links to the various forms that will be needed.

You are always welcome to contact us with questions as well.

It's 3:00 AM in the morning....Will Your 1031 Exchange 1031 exchange Qualified Intermediary Pick Up The Phone?

VOLUME II, ISSUE I IS OUT!

We are so excited. Our most recent issue of The Exeter Exchange newsletter was just produced (Volume II, Issue I) and is now available in hardcopy and PDF formats.

The Exeter Exchange (trademark) newsletter is produced and distributed by Exeter 1031 Exchange Services, LLC and its affiliated companies for the educational benefit of its 1031 exchange clients and their professional advisors.

You can obtain a of The Exeter Exchange newsletter by contacting any of our national branch offices or by downloading it from our website at http://www.exeter1031.com/The_exchange_Newsletter_Archives.aspx.

Volume II Issue I Topics Include:

• It's 3:00 in the morning...Will your QI pick up the telephone? New standards for choosing a provider
  
• Ten key questions to ask when choosing a Qualified Intermediary
  
• In search of the exceptional Qualified Intermediary: Thinking outside the box
  
• The beauty of personalized service: Is anyone home?
  

Domestic Terrorism?

I have been in the real estate industry, specifically in the 1031 exchange industry as a Qualified Intermediary, for almost 24 years. This is my third major real estate market cycle that I have gone through.

You Will Success If You Keep Your Cool

The one thing that I have always noticed is that those who keep their cool make out really well during the real estate market cycle's progress and always end up surviving and coming out in a better position than they were before and those that panic usually make mistakes and come out much worse at the end of the day.

This Market Cycle Is Different! We Now Have Domestic Terrorism

I have noticed one very distinct difference during this particular real estate market cycle. We are running up again "Domestic Terrorism!" Property owners are intentionally walking away from properties because it is profitable to do so, or it is convenient to do so, or it relieves their stress to do so.

Short sales, foreclosures, deeds-in-lieu of foreclosure and the like were supposed to be for those property owners that really are in financial trouble or distress. It was to be used when all else fails. It was not designed to help the property owner get ahead financially.

Where and when and why did property owners lose sight this? I'm not addressing those that truly do deserve to take advantage of the short sale or foreclosure process. I'm addressing those that have the financial ability to do the right thing and choose not to.

Has The Moral Majority Lost Its Majority?

They have absolutely no regard for what is right versus what is wrong. They have no ethics or morals what-so-ever. It is simply a business decision for them. The fact that they think it is O.K. to "stick" it to the lender because they can and because it is profitable to do so absolutely amazes me.

Is The UnMoral Now The Majority?

We have moved so far away from the era where a person's word was their bond and a hand shake was as good as gold. What does this say about our society? What does this mean for us down the road?

What Should We Expect? Far Reaching Consequences!

There will be far reaching consequences that we will all have to pay for because of this inappropriate behavior. Lenders are certainly not stupid. Lenders will learn from this experience and will adjust their underwriting guidelines as needed.

Lenders certainly did not expect or anticipate this "change in moral attitude" that they are now confronted with. It was not part of their "risk analysis" and was not part of their business plan, but it will be in the future.

Property owners who just walk away do not fully realize what a short sighted position it is. It is certainly having a significant impact on the over all real estate market by increasing and magnifying the problems that the industry is facing. They may "reap the benefits" as they see it now, but they will pay for it in the long run. The sad part is that so will we.

Real Estate Professionals Unite!

We as real estate professionals should and must be part of the solution. We must take the high road to higher ground. We must set a good example by promoting good ethical and moral business practices and shunning unethical and unmoral business practices.

It is what will set each and everyone of us apart from the rest and will have a huge long-term impact on our businesses for years to come. It will also help promote a healthier real estate market.

Looking for MORE out of 1031 Exchange Seminars?

We hear this alot.

You have attended a 1031 exchange seminar and it was too basic or did not go into sufficient depth. You are looking for more.

We Heard You

We have developed a 2 and 1/2 hour seminar that goes into much more detail than your standard 1031 exchange seminar. We don't use a power point presentation. we use the white board or easel. We roll up our sleeves and get into much more in depth technical stuff so that you know how the 1031 exchange works inside and out.

In fact, we should probably call it a workshop instead of a seminar.

Next 1031 Exchange Workshop

Our next in depth 1031 exchange workshop is Thursday, June 5, 2008 in Los Angeles. You can get all of the details at http://www.exeter1031.com/1031_exchange_seminar_los_angeles.aspx.

You can also view our upcoming 1031 exchange seminars and workshops at http://www.exeter1031.com/seminars.aspx. This web page is updated daily and we are always adding new 1031 exchange programs.

Contact a Senior 1031 Exchange Expert Anytime 24/7 When You Need Them

You are trying to put a real estate transaction together. It's after hours. You hit a wall. There is a 1031 exchange related question that is holding up the 1031 exchange transaction. What do you do?

1031 Exchange Answers To Your Questions When YOU Need Them

Speak With a Senior 1031 Exchange Advisor Now

Exeter 1031 Exchange Services, LLC has the 1031 exchange answers that you're looking for, so go ahead and ask one of our senior 1031 exchange specialists for assistance now. Our senior 1031 exchange advisors are always available 24/7 to answer your 1031 exchange questions no matter how technical or complicated they might be.

You can also speak to one of our senior 1031 exchange advisors 24 hours a day, 7 days a week, 365 days a year. There is no cost to you.

1031 Exchange Workshop for Real Estate Investors in Los Angeles, California

1031 Exchange Workshop

See all of our 1031 exchange classes and programs.

Basic to Intermediate Level 1031 Exchange Workshop

This is a basic to intermediate level workshop on forward, reverse and improvement (build-to-suit or construction) 1031 exchange transactions.

Educational 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 will finish with an explanation of the new fractional ownership opportunities of tenant-in-common property interests (TIC or CORE Interests) used as like-kind replacement property solutions pursuant to Revenue Procedure 2002-22.

There will be plenty of time for open discussions, questions and answers with our 1031 exchange experts. Handout materials will be provided for future reference.

Who Should Attend this 1031 Exchange Seminar?

Anyone interested in gaining a more in-depth understanding of the processes and requirements for completing successful 1031 exchange transactions, including investment property owners (taxpayers/investors), accountants, attorneys, corporate officers, certified financial planners and real estate agents and brokers (Realtors©).

Continuing Education Credit (CE and DRE Credit)

Two (2) hours of continuing education credit will be provided to:

California real estate agents/brokers (Exam Required)
Certified Public Accountants (CPAs)
Certified Financial Planners (CFPs)

Refreshments Provided

Refreshments will be provided for the attendees.

1031 Exchange Expert Speakers

William Exeter
President and CEO
Exeter 1031 Exchange Services, LLC
A Member of The Exeter Group of Companies

Jim Shaw
President and CEO
CapHarbor, LLC

Date and Times

Thursday, June 5, 2008

Seminar I

8:50 AM Registration
9:00 AM - 11:30 AM Workshop

Seminar II

1:50 PM Registration
2:00 PM - 4:30 PM Workshop

Location - Los Angeles, California

Alliance Bank
12300 Wilshire Blvd., #100
Los Angeles, CA 90025

Validated Parking is available

Reservations Required - Seating Limited to 15

To reserve your seat at this 1031 exchange workshop, please RSVP to: (be sure to reference the seminar time you would like to attend)

Suzanne Davis
Assistant Vice President
National Operations Manager
(866) 393-8370

or email Ms. Davis