1031 exchange transactions are actually relatively easy tax-deferred exchange structures to implement if you know what you are doing, but can be very complicated to put into practice if you only use them occassionally.
I thought it would be appropriate and useful to start a step-by-step series on how to begin, structure and complete a 1031 exchange transaction, so stay tuned for the series that will lead you through the complicated process of structing a 1031 exchange.
Saturday, December 08, 2007
Wednesday, November 28, 2007
The Exeter Group Real Estate Talk Radio Show for Monday, December 3, 2007 (Updated)
Monday, December 3, 2007
This week Byron Meo will discuss commercial real estate, including commercial real estate valuations, cash flow analysis, due diligence, geographic areas to buy, sell and hold commercial real estate, and more. Mr. Meo is a licensed Commercial Real Estate Agent with Keller Williams Realty and has years of extensive experience in real estate sales, brokerage, development, and investment.
In addition, Jason S. Buckingham, Esq. who is with the Law Offices of Jason S. Buckingham, Inc. and is President and Chief Executive Officer of Buckingham Commercial Real Estate Services will discuss "self-directed tenant-in-common investments — real estate TICS for the small investor." Mr. Buckingham also has an extensive background in title insurance and escrow services and would be happy to take any questions on these issues as well.
Co-hosts Bill Exeter and Sam Lee will provide an update on the mortgage and credit markets and will discuss year-end tax planning with 1031 exchanges, including strategies to deal with 1031 exchanges that fail toward the end of the year.
You can learn more at http://www.exetergroupradio.com/ for information on how to listen live or to prior recorded shows.
This week Byron Meo will discuss commercial real estate, including commercial real estate valuations, cash flow analysis, due diligence, geographic areas to buy, sell and hold commercial real estate, and more. Mr. Meo is a licensed Commercial Real Estate Agent with Keller Williams Realty and has years of extensive experience in real estate sales, brokerage, development, and investment.
In addition, Jason S. Buckingham, Esq. who is with the Law Offices of Jason S. Buckingham, Inc. and is President and Chief Executive Officer of Buckingham Commercial Real Estate Services will discuss "self-directed tenant-in-common investments — real estate TICS for the small investor." Mr. Buckingham also has an extensive background in title insurance and escrow services and would be happy to take any questions on these issues as well.
Co-hosts Bill Exeter and Sam Lee will provide an update on the mortgage and credit markets and will discuss year-end tax planning with 1031 exchanges, including strategies to deal with 1031 exchanges that fail toward the end of the year.
You can learn more at http://www.exetergroupradio.com/ for information on how to listen live or to prior recorded shows.
Monday, November 26, 2007
The Exeter Group Real Estate Talk Radio Show for Monday, December 3, 2007
Monday, December 3, 2007 Radio Show
This week Jason S. Buckingham, Esq. who is with the Law Offices of Jason S. Buckingham, Inc. and is President and Chief Executive Officer of Buckingham Commercial Real Estate Services will discuss "self-directed tenant-in-common investments — real estate TICS for the small investor."
Mr. Buckingham also has an extensive background in title insurance and escrow services and would be happy to take any questions on these issues as well.
Co-hosts Bill Exeter and Sam Lee will provide an update on the mortgage and credit markets and will discuss year-end tax planning with 1031 exchanges, including strategies to deal with 1031 exchanges that fail toward the end of the year.
You can review show dates, times and topics as well as listen to prior shows at http://www.exeter1031.com/radio_topics_show_dates.aspx.
This week Jason S. Buckingham, Esq. who is with the Law Offices of Jason S. Buckingham, Inc. and is President and Chief Executive Officer of Buckingham Commercial Real Estate Services will discuss "self-directed tenant-in-common investments — real estate TICS for the small investor."
Mr. Buckingham also has an extensive background in title insurance and escrow services and would be happy to take any questions on these issues as well.
Co-hosts Bill Exeter and Sam Lee will provide an update on the mortgage and credit markets and will discuss year-end tax planning with 1031 exchanges, including strategies to deal with 1031 exchanges that fail toward the end of the year.
You can review show dates, times and topics as well as listen to prior shows at http://www.exeter1031.com/radio_topics_show_dates.aspx.
Sunday, November 25, 2007
The Exeter Group Real Estate Talk Radio Show for November 26, 2007
The Exeter Group Real Estate Talk Radio Show is live each and every Monday from 12:00 noon PST to 1:00 PM PST. The show explores and debates real estate-related subjects and issues in a way that both entertains and informs its listening audience.
"Looking for answers in real estate? We break it down for you."
Oil and Gas Investments
This week Certified Estate Advisor Rusty Tweed who is President, Chief Executive Officer and Founder of Tweed Financial Services, Inc. once again joins The Exeter Group Real Estate Talk Radio Show. The discussion will focus on real estate oil and gas interests, including drilling, existing and wildcat operations, as well as producing, royalty and working oil and gas interests.
Rusty will be joined by Chad Willis who is the Founder, President and Director of Texas Energy Holdings, Inc. and an expert in the structuring of oil and gas investment transactions.
Year End Planning with 1031 Exchanges
In addition to oil and gas investments, Mr. Exeter and Mr. Lee will discuss the various year-end planning opportunities available with 1031 exchanges.
Listen to The Exeter Group Real Estate Talk Radio Show Live
Visit our web page http://www.exeter1031.com/radio_topics_show_dates.aspx for information on how to tune in for this week's show.
"Looking for answers in real estate? We break it down for you."
Oil and Gas Investments
This week Certified Estate Advisor Rusty Tweed who is President, Chief Executive Officer and Founder of Tweed Financial Services, Inc. once again joins The Exeter Group Real Estate Talk Radio Show. The discussion will focus on real estate oil and gas interests, including drilling, existing and wildcat operations, as well as producing, royalty and working oil and gas interests.
Rusty will be joined by Chad Willis who is the Founder, President and Director of Texas Energy Holdings, Inc. and an expert in the structuring of oil and gas investment transactions.
Year End Planning with 1031 Exchanges
In addition to oil and gas investments, Mr. Exeter and Mr. Lee will discuss the various year-end planning opportunities available with 1031 exchanges.
Listen to The Exeter Group Real Estate Talk Radio Show Live
Visit our web page http://www.exeter1031.com/radio_topics_show_dates.aspx for information on how to tune in for this week's show.
Friday, November 23, 2007
Sample Legal Beneficiary Vesting for Seller Carry Back Notes
When you sell real estate or personal property that will be part of a 1031 exchange and you carry back an installment note (seller carry back financing) to facilitate the sale of the asset, the installment note must also be included as part of the 1031 exchange account held by your Qualified Intermediary in order to defer all of your income tax liabilities.
In other words, the note must be owned by and held by your Qualified Intermediary. You can learn more by reading our web page entitled "Seller Carry-Back Financing Combined with a 1031 Exchange."
The procedure to include the seller carry-back installment note as part of your 1031 exchange account is actually very easy. The installment note and the corresponding deed of trust or mortgage documents would be drafted with the Qualified Intermediary listed as the beneficiary or owner.
The installment note and corresponding documents cannot be drafted with your name listed as the beneficiary or owner. The documents must be drafted in the name of the Qualified Intermediary so that the Qualified Intermediary owns the installment note as part of your 1031 exchange account.
Drafting the note in your name will trigger "constructive receipt" of your 1031 exchanges funds or assets and create a taxable event.
Notes incorrectly drafted with your name as the beneficiary or owner cannot be corrected after the close of the transaction and generally will be treated as boot and taxed as an installment sale note under Section 453 of the Internal Revenue Code.
The following is the legal beneficiary vesting used on the installment note and corresponding deed of trust or mortgage when we adminster a tax-deferred exchange transaction:
Exeter 1031 Exchange Services, LLC,
as Qualified Intermediary for Exchange No. 00 0000
for the benefit of Jane Doe
402 West Broadway, Suite 400
San Diego, California 92101
Of course, this would not be required if you do not want to include the seller carry back note as part of your 1031 exchange and would prefer to treat it as an installment sale under Section 453 of the Internal Revenue Code. The documents would then be drafted with your name listed as the beneficiary or owner.
You can learn more at http://www.exeter1031.com/seller_carry_back_legal_vesting.aspx.
In other words, the note must be owned by and held by your Qualified Intermediary. You can learn more by reading our web page entitled "Seller Carry-Back Financing Combined with a 1031 Exchange."
The procedure to include the seller carry-back installment note as part of your 1031 exchange account is actually very easy. The installment note and the corresponding deed of trust or mortgage documents would be drafted with the Qualified Intermediary listed as the beneficiary or owner.
The installment note and corresponding documents cannot be drafted with your name listed as the beneficiary or owner. The documents must be drafted in the name of the Qualified Intermediary so that the Qualified Intermediary owns the installment note as part of your 1031 exchange account.
Drafting the note in your name will trigger "constructive receipt" of your 1031 exchanges funds or assets and create a taxable event.
Notes incorrectly drafted with your name as the beneficiary or owner cannot be corrected after the close of the transaction and generally will be treated as boot and taxed as an installment sale note under Section 453 of the Internal Revenue Code.
The following is the legal beneficiary vesting used on the installment note and corresponding deed of trust or mortgage when we adminster a tax-deferred exchange transaction:
Exeter 1031 Exchange Services, LLC,
as Qualified Intermediary for Exchange No. 00 0000
for the benefit of Jane Doe
402 West Broadway, Suite 400
San Diego, California 92101
Of course, this would not be required if you do not want to include the seller carry back note as part of your 1031 exchange and would prefer to treat it as an installment sale under Section 453 of the Internal Revenue Code. The documents would then be drafted with your name listed as the beneficiary or owner.
You can learn more at http://www.exeter1031.com/seller_carry_back_legal_vesting.aspx.
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