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Happy Holidays!
 Dear Friends, From the 1031 CORP. Family to yours, we wish you Happy Holidays and a healthy and prosperous New Year! Warm Regards, Margo, Sue, Marissa, Bettye, Rich & Joe 1031 CORP. |
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Family Is Great For Holidays...But Not For 1031!
When it comes to the holidays most people enjoy celebrating with their relatives. The wonderful family dinners, parties and exchanging gifts can be the highlight of the holiday season. However, when it comes to 1031 exchanges, you want to stay away from your relatives as much as possible.
The definition of a related party for exchange purposes are family members such as parents, siblings, spouse, ancestors and lineal descendants. Those that are not considered related are aunts and uncles, cousins, nieces and nephews, ex-spouses and stepparents. Related parties are not just family members, it may also be a corporation, partnership or other entity of which more than 50% of the stock or capital interest is held by the same taxpayer directly or indirectly (§267(b) or §707(b)(1)).
Aggressive taxpayers with a low basis property have attempted exchanging with a related party for a high basis property so the related party could sell the property recognizing little or no gain. The IRS considers this structure to be tax avoidance and in 1989, subsection (f) was added to Internal Revenue Code Section 1031 imposing special rules for exchanges involving related parties.
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A Failed Exchange May Have Tax Benefits
An exchange started near the end of a tax year will often run into the following tax year. The regulations address how to handle incomplete exchanges and cash "boot" received by the taxpayer in the following year.
If you structured your exchange with a "bona fide intent" to complete the exchange, you may report the exchange as an installment sale in the tax year in which the first relinquished property was sold. Under the installment sale reporting rules, the receipt of an indebtedness that is secured directly or indirectly by cash or a cash equivalent is treated as receipt of payment. The regulations provide that exchange proceeds held by a qualified intermediary could fall into that category and as long as there is a bona fide intent to exchange, the taxpayer can report cash not reinvested in replacement property as an installment sale. [Reg. 1.1031(k)-1(j)(2); Temp Reg. 15a.453-1(b)(3)(i)]
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1031 CORP. Holiday Hours
Our office hours during the holiday season!
Christmas Eve, December 23, 2011 - close at 12:00pm
New Year's Eve, December 30, 2011 - close at 12:00pm
December 26, 2011 - Closed
January 2, 2012 - Closed
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Lunch & Learn Webinars 
Join us for one of our complimentary Lunch & Learn Webinar Series webinars designed to provide quick educational sessions to help you build and preserve wealth. Grab your lunch and log on to a computer near you!
1031 Exchanges Made Easy
Wednesday, January 11th, 12:05 - 12:50 pm EST
This webinar will provide an overview of 1031 tax-deferred exchanges and their many benefits. We'll also review the requirements of a successful exchange. Register Now!
Advanced 1031 Exchange Topics
Wednesday, January 25th, 12:05 - 12:50 pm EST
This webinar will review topics such as reverse and improvement exchanges, personal property exchanges, related party transactions, installment sales and partnership issues. 1031 basics will not be covered so if you don't know the basics, you are encouraged to take our "1031 Exchanges Made Easy" webinar first. Register Now!
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Message from our President
 | | Margo McDonnell |
Dear Friends,
It is hard to believe we are about to ring in the New Year! As the year winds down, I feel the need to reflect on 2011 and thank you for your business and friendship. Your confidence in 1031 CORP. is greatly appreciated and has helped us make 2011 a very successful year for us. A few of our 2011 highlights include:
- Celebrated our 20th anniversary;
- Partnered with Exchange Professionals, Inc. and R.E.I. Consultants, Ltd. and expanded our footprint into Maryland;
- Welcomed Bettye Matthews, CPA, Rich Heller, Esq., CCIM, CES® and Joe Szajnecki, CES® to our team as consultants;
- Relocated to the Providence Corporate Center in Collegeville, PA;
- Entered into a marketing alliance with Title Alliance, Ltd.;
- Scheduled 49 webinars on a variety of topics designed to help our audience build and sustain wealth;
- Presented 53 continuing education courses and seminars in a number of states; and
- Exhibited at nearly a dozen trade shows.
Fortunately we have seen our exchange activity steadily increase and we are very excited about the plans we have in store for 2012. With your continued support, it is sure to be another great year!
On behalf of our 1031 CORP. family, we wish you and yours a wonderful Holiday Season and a happy, healthy, prosperous New Year.
Best regards,
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1031 CORP. Working with R.E.I. Consultants
Continues Expansion in Mid-Atlantic
1031 CORP. announced that it has entered into a working arrangement with R.E.I. Consultants, Ltd. and will now offer the many clients of R.E.I. Consultants, Ltd. qualified intermediary services under the 1031 CORP. brand. The transaction was completed July 1, 2011.
Read Full News Release |
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About 1031 CORP.
1991 - 2011: Celebrating 20 Years of Excellence
Serving as a nationwide qualified intermediary for 1031 tax-deferred exchanges since 1991, 1031 CORP. strives to provide a superior exchange experience for our customers and their advisors. We provide our customers with enhanced security of funds, knowledgeable exchange professionals and a commitment to keep the exchange process simple for our customers and their advisors. Every member of the exchange team is a Certified Exchange Specialist® and has the experience and expertise to facilitate even the most complex exchange transaction, including reverse, improvement and personal property exchanges. Additional information can be found at www.1031CORP.com. |
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Margo McDonnell, CES®
Certified Exchange Specialist®
President
1.800.828.1031 ext. 212
Mobile: 610.680.6896
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Sue Umstead, CES®
Certified Exchange Specialist®
Senior Vice President
1.800.828.1031 ext. 208
Mobile: 610.755.8520
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Marissa LoCascio, CES®
Certified Exchange Specialist®
Senior Exchange Officer
1.800.828.1031 ext. 210
Mobile: 610.742.4351
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Richard Heller, Esq., CCIM, CES®
Consultant
1.800.734.1031
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Bettye J. Matthews, CPA
Consultant
1.800.680.1031
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Joseph F. Szajnecki, CES®
Consultant
1.800.734.1031 |
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Article Exchange
If you have an article you would like to share, please forward it to Margo McDonnell,CES® and we'll include it in next month's reading list.
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"LIKE" 1031 CORP. on Facebook to receive a daily tidbit on 1031 exchanges and related topics.
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