From all our team members and our extended families at Exeter 1031 Exchange Services, LLC, we wish our clients, their families, partners and advisors a very "Happier" New Year.  

We are looking forward to a much happier, healthier and more prosperous new year in 2021.  

 

“The Taxpayer” on Unraveling the Mystery of 1031 Exchanges | Go Ahead, ASK!

Like Kind Exchange transactions are complex and extremely confusing.  You can ask multiple advisors the same question and get different answers. This is why The Exeter Group demystifies 1031 Exchanges on its Go Ahead, ASK! Podcast.  

The Exeter Group continued Unraveling the Mystery of 1031 Exchanges during its forth Go Ahead, ASK Podcast - Part II (Ep. 04) including how to choose a Qualified Intermediary, what qualifies for tax-deferred exchange treatment under Section 1031, why Qualified Trust Accounts are so very important, and what properties are considered like-kind to other properties. 

"The Taxpayer" is discussed in this Episode 05 of the Go Ahead, ASK! Podcast.  Does the taxpayer have to acquire and hold legal title to the replacement property in the exact same name that they held title to their relinquished property?  Not necessarily.  Join us now....

Go Ahead, ASK! Podcast by The Exeter Group.  "The Taxpayer" on Unraveling the Mystery of 1031 Exchanges. 

Unraveling the Mystery of 1031 Exchanges - Part II | Go Ahead, ASK! Podcast Ep. 04

1031 Tax Deferred Exchange transactions are often very complex and can be extremely confusing to an investor that has never completed a 1031 Exchange before.  The Exeter Group demystifies what qualifies and what doesn’t on the Go Ahead, ASK! Podcast.  

We started Unraveling the Mystery of 1031 Exchanges during our very first Go Ahead, ASK Podcast - Part I (Ep. 01).  We continue this discussion on Episode 04 of Go Ahead, ASK! by The Exeter Group includes how to choose a Qualified Intermediary, what qualifies for tax-deferred exchange treatment under Section 1031, why Qualified Trust Accounts are so very important, and what properties are considered like-kind to other properties. Join us now....

Go Ahead, ASK! Podcast by The Exeter Group.  Unraveling the Mystery of 1031 Exchanges - Part II.

Happy Thanksgiving from Exeter 1031 Exchange Services, LLC

 

Go Ahead, ASK! Podcast | 1031 Exchanges Threatened Again

1031 Exchanges Threatened Again

Every three (3) to five (5) years there is a new threat to Section 1031 of the Internal Revenue Code ("1031 Exchange."  I think during the thirty-six (36) years that I have been in the 1031 Exchange industry almost every administration has proposed some kind of change, reduction or elimination of the 1031 Tax Deferred Exchange strategy. 

It's an Education Thing! 

It is important to note that this is not a Republican or Democratic Party "thing."  Virtually every administration has attempted change.  This is more about educating members of Congress as to the benefits of the 1031 Exchange and the unintended consequences that would result if 1031 Exchanges were significantly reduced or eliminated. 

This time is no different.  

Presidential candidate Biden's has announced he intends to eliminate 1031 Exchanges should he become President. Hosts Bill Exeter and Lauren Speidel of Go Ahead, ASK! discuss with Daniel Wagner, Senior Vice President, Government Relations, with The Inland Real Estate Group, LLC the proposal to eliminate 1031 Exchanges and the effect it would have on the real estate industry and the overall U.S. economy, and how investors, advisors and interested parties can help to educate members of Congress. 

Go Ahead, ASK! Podcast | Unraveling the Mysteries of 1031 Exchange - Part I

1031 Exchange transactions are often complex and confusing.  We demystify what qualifies and what doesn’t on Go Ahead, ASK! Podcast.  

Discussion on Episode 01 of Go Ahead, ASK! includes how to choose a Qualified Intermediary, what qualifies for tax-deferred exchange treatment under Section 1031, Qualified Trust Accounts, and what properties are considered like-kind. Join us now....

Go Ahead, ASK! Podcast by The Exeter Group.  Unraveling the Mystery of 1031 Exchanges - Part I. 

Unraveling the Mystery of 1031 Exchanges

Welcome to the webinar entitled Unraveling the Mystery of 1031 Exchanges.  The webinar is presented by William "Bill" L. Exeter, Chief Executive Officer, President and Founder of Exeter 1031 Exchange Services, LLC, a 1031 Exchange Qualified Intermediary.

We decided to name the webinar Unraveling the Mystery of 1031 Exchanges because there are so many moving parts to a 1031 Exchange transaction and investors are often confused by the myriad of different and frequently contradictory answers they receive when speaking with their legal, tax and financial advisors or their 1031 Exchange Qualified Intermediaries.  

Opinions and Interpretations 

The answers provided are often just "opinions," which creates the seemingly confusing and contradictory information.  The "opinions" sound like fact, but are just the advisors' interpretation of the facts. Some "opinions" or interpretations are more aggressive and some are more conservative in nature.  The key is to understand the difference between the various interpretations and then make up your own mind.  

Go Ahead, ASK! Podcast 

This is why we decided to create the Unraveling the Mystery of 1031 Exchanges webinar and the Go Ahead, ASK! Podcast.  Our goal is to provide investors with an understanding of the various opinions and interpretations so that they can make better informed investment decisions. 

Unraveling the Mystery of 1031 Exchanges Webinar

Go Ahead, ASK! Podcast is Here!

The Exeter Group of Companies launches Go Ahead, ASK! Podcast. Go Ahead, ASK! will unravel the mysteries of investment real estate so that investors can make better informed real property investment decisions.

We are so excited to introduce our new Go Ahead, ASK! Podcast where podcast hosts William L. Exeter, Hiba Ibrahim, Mark Turok and Lauren Speidel with The Exeter Group of Companies unravel the confusing mysteries surrounding investment real estate with the goal of helping real property investors make better informed investment decisions.

Go Ahead, ASK! 

Listeners are encouraged to email real estate related questions, issues or request specific real estate related topics to be addressed by the hosts to ask@exeterco.com.  Questions will be addressed on the next scheduled Go Ahead, ASK! podcast.  Topics will be scheduled as soon as possible.

Upcoming Real Estate Topics 

• Unraveling the Mystery of 1031 Exchanges - Part I 
• Unraveling the Mystery of 1031 Exchanges - Part II
• Exit Strategies for Highly Appreciated Real Property 
• Net Lease Properties (Triple Net Lease Properties) 
• 2-4 Unit Rental Properties 
• Qualified Opportunity Zone Investment Funds (QOZ) 
• Delaware Statutory Trusts (DSTs) 
• Real estate tax issues 
• Seller Carry Back Notes (Installment Sales)

Guest Experts 

Individuals who have special or in depth expertise in special areas of investment real estate are invited to contact us to appear on the Go Ahead, ASK! Podcast.  

IRS Grants Extension of 1031 Exchange 45 and 180 Day Due Dates

45 and 180 Calendar Day Deadlines Extended Due to Coronavirus (COVID-19)  

The U.S. Treasury (Internal Revenue Service) issued Notice 2020-23 late Thursday evening, April 9, 2020, granting relief to investors that are in the middle of a 1031 Exchange transaction. 

This Notice is very different from the typical disaster declaration and extensions granted in the past and is somewhat confusing based upon the way it was drafted.  

Historically, the President would declare a Natural Disaster for a specific geographic area and a date specific event and the U.S. Treasury (Internal Revenue Service) would then issue a Disaster Relief Notice providing a 120-calendar day extension to the 45- and 180-calendar day deadlines.  This approach was not used this time.

IRS Notice 2020-23

Notice 2020-23, which revises Notice 2020-18, 2020-15 IRB 590 (April 6, 2020), and Notice 2020-20, 2020-16 IRB 660 (April 13, 2020), does not specifically address Section 17 contained within Revenue Procedure 2018-58, so it would initially appear that the 120-calendar day extension is not applicable to the current situation.

Affected Taxpayer (Investor)

The Notice provides that any person performing a time-sensitive action listed in either Section 301.7508A-1(c)(1)(iv) – (vi) of the Procedure and Administration Regulations or Revenue Procedure 2018-58, 2018-50 IRB 990 (December 10, 2018), which is due to be performed on or after April 1, 2020, and on or before July 15, 2020 (Specified Time-Sensitive Action), is an Affected Taxpayer. 

Deadline Extension

Therefore, the guidance provided within Notice 2020-23 applies to investors that have a 45-calendar day identification deadline or a 180-calendar day exchange deadline that falls on or after April 1st, 2020 and on or before July 15th, 2020. The applicable deadline that falls within those timelines is extended to July 15th, 2020.

Exeter 1031 Exchange Services, LLC will continue to monitor the current situation and communicate any new guidance from the U.S. Treasury (Internal Revenue Service).  Check the Exeter News Wire for the most recent information and updates.

Lauren Speidel Promoted to Regional Manager for Exeter 1031 Exchange

January 25, 2020--Chicago, Illinois--Exeter 1031 Exchange Services, LLC announced the promotion of Lauren Speidel to the position of Regional Manager for the company's Midwest Regional Office located in Chicago, Illinois. 

Ms. Speidel will continue to be responsible for the expansion of the company's Midwest Regional Office, based in Chicago, Illinois. She is responsible for sales, marketing, and client relationship management for the Midwest Region including, but not limited to, Chicago, Illinois, Wisconsin, Minnesota, Michigan, Ohio, Indiana, Iowa, and Missouri. 

Read the full press release here.

California Revises Real Estate Withholding Statement (CA FTB Form 593)

The California Franchise Tax Board (“FTB”) announced changes to real estate withholding forms on November 5, 2019.  The California FTB consolidated California FTB Forms 593, 593-C, 593-E, and 593-I into one California FTB Form 593 to eliminate confusion among taxpayers and their tax advisors.  However, they have actually created more confusion and more paperwork for all parties involved. 

FTB Form Now Required for Every Sale of Real Estate

Beginning January 1, 2020, the new California FTB Form 593, Real Estate Withholding Statement, must be completed and signed during the each and every closing or escrow process.  The California FTB Form 593 should be submitted to the California FTB whenever a sale of real property occurs no later than the 20th day of the month following the month in which the real estate sale closed.  In the past, the California Form 593 was submitted to the California FTB if, and only if, there was actual withholding required.  The new form must now be submitted to the California FTB on every real estate sale transaction regardless of whether there is withholding required or not.

California FTB withholding is required when California real estate is sold or transferred unless the seller qualifies for certain withholding exceptions. The real estate escrow person (“REEP”) is anyone involved in closing the real estate transaction which includes any attorney, escrow company, title company, QI, or anyone else who receives and disburses payment for the sale of California real property.  The REEP is required to notify buyers of California FTB withholding requirements, unless the buyer is a Qualified Intermediary (“QI”) in a tax-deferred exchange pursuant to Section 1031 of the Internal Revenue Code. The amount withheld from the seller or transferor is sent to the California FTB as required by R&TC Section 18662. 

Exemptions to Withholding 

There are certain withholding exemptions such as Sections 121 (tax free exclusion on the sale of a primary residence), 721 (tax free contribution to a partnership), 1031 (tax-deferred exchange of investment property), 1033 (tax-deferred exchange due to a natural disaster or eminent domain action) of the Internal Revenue Code as well as others. 

Buyers Now Responsible for Withholding on Installment Notes 

The REEP reports the sale or transfer as an installment sale if there will be at least one payment made after the tax year of the sale. The withholding is 3 1/3% (.0333) of the down payment during escrow. Buyers/Transferees are required to withhold on the principal portion of all payments made following the close of the real estate transaction.