Thursday, October 18, 2012

Gift Limit Increased by IRS for 2013

Taxpayers are allowed to "gift" real estate, personal property and/or money to other individuals without having to pay any kind of corresponding taxes because of the gift provided the taxpayer follows certain gift limitations set forth by the Internal Revenue Service. 

Annual and Lifetime Gift Limits

The are two (2) different types of gift limitations.  There is the annual gift limitation and there is the lifetime gift limitation.  These limits are established by Congress and administered by the Internal Revenue Service. 

Annual Gift Limit Increased for 2013

The annual gift limit is set annually by the Internal Revenue Service pursuant to a formula pre-established by Congress.  The Internal Revenue Service just announced that the Annual Gift Limit for 2013 has been increased to $14,000.00 (it was $13,000.00 for 2012).

Monday, October 15, 2012

Tax Benefits of a 1031 Exchange Should Not Overshadow Financial Benefits

Real estate investors frequently jump into acquisitions of replacement real property as part of their 1031 Exchange transaction, and that may not be well suited for their investment goals and objectives.  The rush into these investments is certainly understandable due to the stress placed on the investor due to the 1031 Exchange deadlines involved.

Tax Benefits Should Not Guide Investment Decision

However, while the tax benefits related to structuring the 1031 Exchange are certainly important, the financial and economic elements of a replacement real property should not be ignored simply because of the 1031 Exchange identification and completion deadlines. 

Real estate investors should let the economics of the replacement real property guide their final investment decision instead of making their decision based solely on the income tax benefits involved by 1031 Exchanging into another replacement property.

Delaware Statutory Trusts

Delaware Statutory Trusts, also referred to as DSTs, can also provide another investment vehicle for real estate investors to consider.  The more options the real estate investor has at their disposal the more likely he or she will find the most suitable investment for their 1031 Exchange and not be forced into "jumping" into the wrong investment. 

Wednesday, August 15, 2012

Real Estate Economic & Demographic Trends, Analysis and Forecasts

The World and the West

The "Great Recession" has left many of us scratching our heads and wondering what's next?  Where do we go from here?  How should we re-position our real estate portfolio going forward now that we are emerging from the recession?  Should I hang tight, or make an investment move now?

Make Better Informed Investment Decisions

We realize these are confusing times, which is why Exeter 1031 Exchange Services, LLC is hosting this webinar for you.  Our goal is to provide you with up-to-date real estate market data and information so that you can make better informed investment decisions.

This exciting webinar will provide an update on the real estate market on a local, state, national and global point of view as well as an overview of certain demographic trends that will affect investment real estate.  It will help you answer the above questions, and help you decide how to position your own investment portfolio as we move forward beyond the recession. 

Advanced Registration Is Required 

Click here to register for this webinar on economic and demographic trends.

Sunday, August 12, 2012

Reverse 1031 Exchange Webinar

Save Your Deal With a Reverse Exchange 

Today's rapidly evolving real estate market has lots of investment opportunities available for the real estate investor, but you have to move very quickly to take advantage of the investment opportunities (or lose them).  

The Reverse Exchange can help. 

You don't have to wait until you have listed and sold your existing property. You can take advantage of investment opportunities as they come up by buying your replacement property first and then worrying about selling your existing relinquished property later. Eliminate the risk of paying taxes due to a failed 1031 Exchange Take advantage of unexpected investment opportunities by acquiring your replacement property first and then selling your relinquished property later.

Complex Reverse 1031s Briefly Addressed

Learn how to combine a Reverse 1031 Exchange with a Forward 1031 Exchange so that you have up to 360 days to complete your over all transaction.  This is not one 1031 Exchange, but two (2) 1031 Exchange strategies combined together.

This is a basic to intermediate level Reverse Exchange Webinar that discusses the benefits and advantages of deferring the payment of your capital gain and depreciation recapture taxes by structuring a Reverse 1031 Exchange where you acquire your replacement property before you sell your relinquished property. We'll address the requirements, structures, processes, strategies, and compliance issues necessary to successfully complete a Reverse 1031 Exchange. There will be plenty of time for questions and answers.

Registration Required 

Click here to register for this Reverse Exchange Webinar.

Thursday, August 02, 2012

Consumer Financial Protection Bureau Issues Report on 1031 Exchange Industry

CFPB Issues Recommendations on 1031 Exchange QI's

The Consumer Financial Protection Bureau or CFPB issued its long awaited report on July 21, 2012 regarding its recommendations for additional or new legislative and regulatory initiatives for the 1031 Exchange Qualified Intermediary Industry.

Qualified Intermediaries administer tax-deferred exchange transactions pursuant to Section 1031 of the Internal Revenue Code and Section 1.1031 of the Department of the Treasury Regulations

No New Regulations or Legislation Recommended 

CFPB's Report recommended no new or additional legislation or regulations be implemented for the 1031 Exchange Qualified Intermediary Industry.  The CFPB Report went into very specific details regarding the CFPB's assessment of the 1031 Exchange industry, including transaction volume, potential benefits of additional legislation or regulation versus cost/benefits incurred.  

Friday, July 27, 2012

Focus on Jobs, The Rest Will Come!

Quick note for Mr. Obama

Mr. Obama, just focus on job creation in the United State, and the rest of what we need will follow. It's not a difficult concept.  The creation of jobs in the U.S. will solve many of our other problems and ailments just by creating new jobs, which will create spending, which will create more demand for products and services, which will create more jobs, and more demand, and so for.  It's the domino effect in economics. 

Stop worrying about whether we should tax the rich or the middle class.  Stop worrying about health care at this point.  Just create jobs.  The rest will follow.  

My two cents. 

Tuesday, July 17, 2012

Mr. Obama Thinks Businesses Thrive BECAUSE of Government

Business Survives IN SPITE of Government

No, Mr. Obama.  I'm sorry, but that is simply not true. I have been a small business owner and a small business investor for many years, and I can tell you that I have NEVER EVER thrived because of anything that the government did.

It's quite the contrary.  Businesses, especially small businesses, survive IN SPITE of government interference; not because of any thing that the government did.

Obama is Out-of-Touch, Again 

The simple fact that you, Mr. Obama, believe that businesses thrive "because" of what government does for them clearly demonstrates that you are completely out-of-touch with businesses, including and especially small business owners and investors. 

The fact that you are so out-of-touch with what creates jobs in this country should scare each and every taxpayer. It is because of you that this recovery can't seem to kick into high gear.  

Business as Job Creators 

Businesses would not just survive; they would actually thrive with significantly LESS government.  And, if businesses thrive, they create more jobs and hire significantly more people.  That is what it is all about Mr. Obama - job creation!  Let's get people back to work!  

Monday, July 16, 2012

Structured Investing Quarter-In-Review

Quarter-In-Review Webinar

Click here to view other upcoming webinars in The Exeter Edge™ Webinar Series.

Go To Webinar Reservations Are Required

Click here to register for the Structured Investing Quarter-In-Review webinar.

Structured Investing Quarter-In-Review Webinar

The Quarter-In-Review webinar focuses on reviewing the events that have influenced global markets this last quarter and will also present research and historical data that reinforce the Structured Investing philosophy.

The Structured Investing Quarter-In-Review webinar will cover:
  • Quarterly domestic and international stock market numbers 
  • Recent economic data 
  • What moved the markets in the past quarter 
  • How the basic tenets of a Structured Investing philosophy still apply 

Tuesday, July 10, 2012

When Would a 1031 Exchange Not Benefit Me?

I get this question quite a bit. Is there ever a situation or time when a 1031 Exchange might not benefit me or would not be such a good idea? The answer, of course, is yes. 1031 Exchanges are complex tax-planning strategies that are not suitable for everyone and are certainly not appropriate under all circumstances.

The sale of any real estate should be carefully evaluated to determine the best and most suitable tax-planning strategy available for each investor. This is why investors should always visit with their legal, tax and/or financial advisors before proceeding with any 1031 Exchange. Advisors can help investors ensure that the 1031 Exchange is the best alternative for their specific situation, goals, and objectives. I cannot emphasize this enough! I know that investors like to do things themselves, and that they hate to pay advisors for their advice and guidance, but a few hundred dollars is well worth it if you can avoid a major headache later. Remember, investors often do not know what they do not know. An advisor can help you understand what you do not know, but need to be wary of.  Your team of advisors should also include a good 1031 Exchange Qualified Intermediary that can help balance each of the advisors opinions.

Having said all of that, you would generally not want to structure a 1031 Exchange transaction for the sale of investment real estate if the sale would generate an actual loss for income tax purposes. You would most likely be better off with selling the property without a 1031 Exchange so that you can recognize and write off the loss from the sale. However, there are limited situations when you might actually want to defer a loss from the sale of property by structuring a 1031 Exchange.

In many cases, an investor’s Adjusted Gross Income, also referred to as his or her AGI, might be high enough that it prevents the investor from taking advantage of his or her passive activity losses on some or all of their investment properties. The outright sale of the investment property may allow them to recognize and take full advantage of the accumulated suspended passive activity losses against other taxable income or gains. It might make more sense in cases like this to just sell a property and use up the suspended activity losses. This requires careful analysis of the investor’s overall income tax position.

Investors may also want to consider a partial 1031 Exchange where they sell property at one value and exchange into or acquire a lesser value property or what we call trading down in value. This would allow them to defer most of their taxable income tax from depreciation recapture and capital gains, but recognize a small amount to strategically offset certain other loss carry forwards. Trading down can also be an effective strategy used to reduce their overall debt service level. It is important not to automatically rush into a 1031 Exchange, but to do some carefully planning to make sure that the 1031 Exchange is the right strategy to meet your specific goals and objectives.

Friday, February 17, 2012

Wondering about the direction of the U.S. economy?

Try this measurement index:  The Augmented Misery Index … the old inflation-plus-unemployment formula minus changes in home prices. Lately it’s ticked down to 7.4, less than half the level of a year ago, and figures to fall further as jobs and housing pick up and prices ease.

Friday, January 27, 2012

The Wealth Solution Webinar

Are you uncertain how to manage your wealth? Concerned you won’t be prepared for retirement? Do you want to leave a lasting legacy for your heirs? Have you clearly defined your personal and financial goals? 

The Wealth Solution webinar will show you how to:
  • overcome key investment challenges
  • demystify the investment planning process
  • create a total investor profile and select a true wealth manager – or be your own!

Presented by:
Josh Koehnen, MsBA, CFP® 

Hosted by:
William L. Exeter
President and Chief Executive Officer

Sunday, January 01, 2012

Happy New Year!

The Exeter Learning Institute's team of 1031 Exchange Experts and Advisors would like to wish each and everyone of our readers a very Happy, Healthy and Prosperous New Year.