Yesterday I was discussing when a taxpayer would have the right to his or her 1031 exchange funds once his or her 1031 exchange fails. It is a very complex and frustrating situation to find yourself.
However, there might be a small bright spot even when your 1031 exchange has failed and becomes a taxable event.
The issues discussed yesterday outlined the circumstances under which the taxpayer would have access to his or her 1031 exchange funds when a 1031 exchange transaction falls apart.
The point in time that the taxpayer has the right to receive their funds from the 1031 exchange qualified intermediary when the 1031 exchange will determine the year in which the failed 1031 exchange will be taxable.
Click here for more complete information.
Tuesday, October 09, 2007
Monday, October 08, 2007
When Can You Get Your Money Back in a Failed 1031 Exchange
This is always a difficult issue to address. It creates an immediate conflict between the taxpayer who wants immediate access to his or her 1031 exchange funds and the 1031 Exchange Qualified Intermediary who is trying to comply with IRS Regulations.
The taxpayer who was attempting to complete a 1031 exchange was either not able to identify and/or acquire any like-kind replacement properties in order to successfully complete his or her 1031 exchange transaction.
Therefore, the 1031 exchange fails and the 1031 exchange has not turned into a taxable transaction. The taxpayer demands the return of his or her 1031 exchange funds immediately since the 1031 exchange has now failed and it is now taxable, but the 1031 Exchange Qualified Intermediary refuses to do so. Who is right? What can be done?
The IRS Regulations make it very clear that the taxpayer's 1031 Exchange Qualified Intermediary (Accommodator) can only permit the taxpayer to have access, exercise control over or receive the benefit of his or her 1031 exchange funds under certain circumstances.
The taxpayer does not care because in their view their 1031 exchange has failed and it is taxable regardless of when they receive the funds. The 1031 Exchange Qualified Intermediary does care because they do not want to risk losing their status as a 1031 Exchange Qualified Intermediary and jeopardizing the status of other clients' 1031 exchanges that were successful.
Click here for more information regarding this issue.
The taxpayer who was attempting to complete a 1031 exchange was either not able to identify and/or acquire any like-kind replacement properties in order to successfully complete his or her 1031 exchange transaction.
Therefore, the 1031 exchange fails and the 1031 exchange has not turned into a taxable transaction. The taxpayer demands the return of his or her 1031 exchange funds immediately since the 1031 exchange has now failed and it is now taxable, but the 1031 Exchange Qualified Intermediary refuses to do so. Who is right? What can be done?
The IRS Regulations make it very clear that the taxpayer's 1031 Exchange Qualified Intermediary (Accommodator) can only permit the taxpayer to have access, exercise control over or receive the benefit of his or her 1031 exchange funds under certain circumstances.
The taxpayer does not care because in their view their 1031 exchange has failed and it is taxable regardless of when they receive the funds. The 1031 Exchange Qualified Intermediary does care because they do not want to risk losing their status as a 1031 Exchange Qualified Intermediary and jeopardizing the status of other clients' 1031 exchanges that were successful.
Click here for more information regarding this issue.
Saturday, October 06, 2007
The Exeter Group Real Estate Talk Radio Show Launched
Exeter Exchange Management Corporation, an affiliate of Exeter 1031 Exchange Services, LLC, and in conjunction with The Exeter Learning Institute launched The Exeter Group, a live internet based real estate talk radio show.
The radio talk show will focus exclusively on local, regional and national real estate related topics designed to assist real estate investors in keeping abreast of industry and market forces. The program content will include real estate transactional and structural discussions, legislative and regulatory issues, current industry trends and developments, as well as economic forecasts.
The program will include an impressive lineup of guest experts that will provide relevant and timely real estate advice, discussion and information. Our goal is to develop and deliver a professional, educational and informative internet radio talk show experience with dynamic and robust real estate program content for the listening audience.
The radio talk show will be branded under The Exeter Group™ brand name and is part of The Exeter Learning Institute's continuing efforts to educate and inform real estate investors so they can make educated and informed investment decisions.
You can view posts, announcements and access information regarding The Exeter Group Radio Show, including its weekly guest experts, on the Exeter Discussion Board under Exeter Group Radio.
The radio talk show will focus exclusively on local, regional and national real estate related topics designed to assist real estate investors in keeping abreast of industry and market forces. The program content will include real estate transactional and structural discussions, legislative and regulatory issues, current industry trends and developments, as well as economic forecasts.
The program will include an impressive lineup of guest experts that will provide relevant and timely real estate advice, discussion and information. Our goal is to develop and deliver a professional, educational and informative internet radio talk show experience with dynamic and robust real estate program content for the listening audience.
The radio talk show will be branded under The Exeter Group™ brand name and is part of The Exeter Learning Institute's continuing efforts to educate and inform real estate investors so they can make educated and informed investment decisions.
You can view posts, announcements and access information regarding The Exeter Group Radio Show, including its weekly guest experts, on the Exeter Discussion Board under Exeter Group Radio.
Exeter Discussion Board Launched by Exeter Learning Institute
Exeter 1031 Exchange Services, LLC launched its Exeter Discussion Board. The Exeter Discussion Board provides a venue for real estate investors to ask questions or discuss issues on real estate related topics such as: 1031 exchanges, financing, asset management, property management, escrow and closings, TIC Investments, Exeter Group Radio, real estate legal and tax issues.
"The Exeter Discussion Board will include an impressive lineup of guest experts that will provide relevant and timely answers and advice for those who post questions. Our goal is to develop and deliver a professional, educational and informative forum with dynamic and robust discussions on real estate related issues, including discussions on requirements, structures, processes, strategies, and compliance issues necessary to successfully complete real estate transactons.
The Exeter Discussion Board is part of The Exeter Learning Institute's continuing efforts to educate and inform real estate investors so they can make educated and informed investment decisions.
"The Exeter Discussion Board will include an impressive lineup of guest experts that will provide relevant and timely answers and advice for those who post questions. Our goal is to develop and deliver a professional, educational and informative forum with dynamic and robust discussions on real estate related issues, including discussions on requirements, structures, processes, strategies, and compliance issues necessary to successfully complete real estate transactons.
The Exeter Discussion Board is part of The Exeter Learning Institute's continuing efforts to educate and inform real estate investors so they can make educated and informed investment decisions.
The Exeter Exchange Newsletter Launched
I am very excited to announce that we have launched The Exeter Exchange™ Newsletter. This is the newest educational content piece to be written, produced and published by The Exeter Learning Institute as part of its efforts to educate real estate investors so that they can make better informed real estate investment decisions.
Our goal is to develop and deliver a professional, educational and informative newsletter with dynamic and robust articles on 1031 Exchange and real estate related issues, especially discussions on requirements, structures, processes, strategies, and compliance issues necessary to successfully complete 1031 Exchange transactons.
Read, view and download prior editions of The Exeter Exchange™ Newsletter in PDF format.
Our goal is to develop and deliver a professional, educational and informative newsletter with dynamic and robust articles on 1031 Exchange and real estate related issues, especially discussions on requirements, structures, processes, strategies, and compliance issues necessary to successfully complete 1031 Exchange transactons.
Read, view and download prior editions of The Exeter Exchange™ Newsletter in PDF format.
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