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. 

Exeter 1031 Exchange Services, LLC Expands Into Phoenix Arizona

National Expansion Continues into Phoenix Arizona 

Exeter 1031 Exchange Services, LLC announced its plans to continue its nationwide expansion of its 1031 Exchange Services Group into other geographic markets, including Phoenix, Arizona with the launch of its Southwest Regional Office.

Exeter 1031 Exchange Services
Opens Southwest Regional Office
in Phoenix, Arizona

New Southwest Regional Office in Phoenix, Arizona 

Exeter 1031 Exchange Services, LLC announced that it has opened its new Southwest Regional Office located at Exeter 1031 Exchange Services, LLC, 2415 East Camelback Road, Suite 700, Phoenix, Arizona 85016.  

The new Southwest Regional Office in Phoenix, Arizona will be staffed by David Blair,  Business Development Officer, Exeter 1031 Exchange Services, LLC.  David Blair is a five-year veteran at Exeter 1031 Exchange Services, LLC and is very excited about opening the new office in Phoenix, Arizona for Exeter 1031 Exchange Services, LLC.  

Exeter 1031 Exchange Services, LLC Further Expands Business Development Team

Kevin Foster joins Exeter 1031 Exchange Services

Kevin Foster joins the Business Development team of The Exeter Group, LLC and its affiliated companies, including Exeter 1031 Exchange Services, LLC, Exeter Reverse 1031 Exchange Services, LLC and Exeter IRA Services, LLC, and their affiliated companies as a Business Development Officer.

Mr. Foster to be Located in Exeter 1031 Exchanges' Northwest Regional Office in Seattle, Washington 

Kevin Foster will be responsible for our Northwest Regional Office located in Seattle, Washington.  The Northwest Regional Office in Seattle will serve as a regional business development office for our 1031 Exchange Services Group.

Kevin will be responsible for the day-to-day sales, marketing and client relationship management for the Northwest Region, including, but not limited to, Washington, Oregon, Idaho, and Wisconsin.

1031 Exchange Experience

Mr. Foster can assist clients with Forward 1031 Exchanges, Reverse 1031 Exchanges and Improvement 1031 Exchanges. He has worked extensively with escrow officers, settlement agents, real estate agents and brokers, closing attorneys, registered investment advisors and registered securities representatives in the administration of their clients' 1031 Exchange transactions.

While new to the 1031 Exchange industry, Kevin is very familiar with 1031 Exchanges having attended hundreds of industry related conferences, educational programs, seminars and webinars, escrow meetings and trade show events over the years.  

Exeter 1031 Exchange Services, LLC Expands Into Chicago Illinois

1031 Exchange Services Group Expansion Continues

Exeter 1031 Exchange Services, LLC announced plans to continue its nationwide expansion of its 1031 Exchange Services Group into other important geographic markets, including Chicago, Illinois.

Exeter 1031 Exchange Services
Expands Into Chicago, Illinois

Exeter 1031 Exchange Services, LLC previously announced that Lauren Speidel had joined the company's Business Development Team and is responsible for the sales and marketing activities in the Midwest Region, including Chicago, Illinois.

New Midwest Regional Office in Chicago, Illinois 

Exeter 1031 Exchange Services, LLC's
Midwest Regional Office
Chicago, Illinois

Lauren Speidel will be opening the company's new Midwest Regional Office in Chicago, Illinois located at 1136 South Delano Court, Suite B201, Chicago, IL 60605.  Lauren will be
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.

Exeter 1031 Exchange Services, LLC Expands Business Development Team

Lauren Speidel joins Exeter 1031 Exchange Services

Lauren Speidel joins the Business Development team of The Exeter Group, LLC and its affiliated companies, including Exeter 1031 Exchange Services, LLC, Exeter Reverse 1031 Exchange Services, LLC and Exeter IRA Services, LLC, and their affiliated companies as a Business Development Officer.

Exeter 1031 Exchange Services, LLC to Open Midwest Regional Office in Chicago, Illinois 

Lauren Speidel will be responsible for opening our new Midwest Regional Office to be located in

Lauren Speidel Joins
Exeter 1031 Exchange

Chicago, Illinois.  The new Midwest Regional Office in Chicago will serve as a new regional business development office for our 1031 Exchange Services Group.

Lauren will be responsible for the day-to-day 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.

Extensive 1031 Exchange Experience

Lauren can assist clients with Forward 1031 Exchanges, Reverse 1031 Exchanges and Improvement 1031 Exchanges. She has worked extensively with financial planners, escrow officers, settlement agents, real estate agents and brokers, closing attorneys, registered securities representatives and accountants in the administration of their clients' 1031 Exchange transactions.

Lauren Speidel is very familiar with the 1031 Exchange industry.  Lauren has worked with Inland Securities and Inland Private Capital for close to a decade, specializing in investment products such as REITs and alternative replacement property options for clients performing 1031 Exchanges such as Tenant-In-Common (TICs) and Delaware Statutory Trusts (DSTs) investment properties.  She has also worked in the financial services and banking industries as well.

Exeter 1031 Exchange Services, LLC Expands Into Seattle, Washington

1031 Exchange Services Group Expansion Continues

Exeter 1031 Exchange Services, LLC announced plans to continue its nationwide expansion of its 1031 Exchange Services Group.  The nationwide expansion will include other important geographic markets such as Seattle, Washington. 

Northwest Regional Office
800 Fifth Avenue,
Suite 4100,
Seattle, WA 98104

New Northwest Regional Office in Seattle, Washington 

Exeter 1031 Exchange Services, LLC will be opening its new Northwest Regional Office in Seattle, Washington to be located at 800 Fifth Avenue, Suite 4100, Seattle, WA 98104 in May, 2017. 

The Northwest Regional Office will be responsible for sales, marketing and client relationship management for the Northwest Region, including, but not limited to, Washington, Oregon, Idaho and Wisconsin markets. 

Listen to a full interview of Bill Exeter, president and chief executive officer, Exeter 1031 Exchange Services, LLC on the topic of 1031 Exchange issues with host Athena Paquette. Bill Exeter covers the basic issues of 1031 Exchanges, including the requirements and compliance issue necessary to successfully structure and complete a tax-deferred exchange.

Emissions Credits are Classified as Like Kind Property for 1031 Exchange Purposes

Like kind property as defined for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code is not always an easy call to make and often involves grays areas until the IRS clears up the issue for us. 

This is the case for Nitrogen Oxide Emissions (NOx) and Volatile Organic Compounds (VOC).  The question was whether they were like kind to each other for 1031 Exchange purposes.

The Internal Revenue Service issued Private Letter Ruling (PLR) 201024036 today, which concludes that the underlying nature and character of the rights conferred by emissions credits for nitrogen oxide emissions (NOx) are like-kind to the rights conferred by emissions credits for volatile organic compounds (VOC). 

The Internal Revenue Service concluded in PLR 201024036 that the underlying nature and character of the emission credits were of like-kind property to each other and therefore qualified for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code.

Two Party Swaps: Concurrent 1031 Exchanges

These type of 1031 exchanges are not that common, but they do happen on occassion. This post was triggered by a recent call that I received. The caller said that he wanted this other person's investment property and coincidentally the other person wanted an investment property that he had. He wanted to know if they merely "swapped" properties if that would qualify as a tax-deferred exchange.

Classic Two Party Swap

This is a classic two party swap or concurrent 1031 exchange. You might also hear it referred to as a simultaneous 1031 exchange. It is actually the most basic type of tax-deferred exchange or 1031 exchange and is the structure often used years ago before the current delayed exchange was allowed by the courts through the Starker cases.

You have two investors that simply want each other's investment property. This tax-deferred exchange is often over complicated by the parties involved when it should be a relatively straight forward tax-deferred exchange.

Concurrent Recording of Deeds

The procedures to complete this tax-deferred exchange are very simple. The two parties simply draw up deeds for each of their properties granting the property to the other party. The two deeds are then recorded concurrently or simultaneously, and you have accomplished the two party swap.

Property Market Values

This assumes of course that both properties are worth the same amount. One party may owe the other party a cash payment in order to "equalize" the values if the properties are not equal value. The party that receives the cash payment will recognize tax on the cash portion received or he or can set up a delayed tax-deferred exchange with a Qualified Intermediary or Accommodator.

Professional Qualified Intermediary

The use of a professional Qualified Intermediary is not generally needed when you are structuring a classic two party swap. However, you must make sure that everything is structured and recorded concurrently.

Investors often retain a professional Qualified Intermediary in order to make sure that the necessary steps are taken to protect the tax-deferred exchange transaction. This will ensure that the proper tax-deferred exchange documentation is completed accurately and there is no accidental error that could invalidate the tax-deferred exchange.

You might also want to review some of the blog posts on this subject on the Exeter Discussion Board.

Consult with Tax Advisor

Both parties should of course consult their tax advisor before proceeding with a two party swap in order to ensure that the values are correct. Any complication due to property market value or outstanding debt, etc., can be dealt with before recording the deeds.