Asset Preservation's 1031 Exchange eNews | 800.282.1031|info@apiexchange.com

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Wishing You Happy Holidays from Asset Preservation, Inc.

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Dear Clients, Friends, and Family:

It has been 30 years since Asset Preservation, Inc. (API) first opened its doors, and I want to express my sincere gratitude for the opportunity to work with you on the many 1031 transactions we have handled during that time. I’m a hands-on guy, so I’ve interacted personally with many of you: problem-solving, and helping you and your advisors achieve your goals. I truly understand the struggles and hardships many of you have faced. I’d like to share a message we received from a client last week since it hit home for me in many respects:

“I want to emphasize that I was very impressed with your service. The decision not to go forward with a 1031 exchange was excruciating but necessary to save my business. Nine months of lockdown and/or deep restrictions have taken their toll. Rest assured that if the opportunity presents itself in the future, I’ll avail myself to API’s services, top-notch. Also, your firm was recommended by my real estate broker. I was a bit reluctant at first but was immediately made comfortable when discussing your services with representatives of your firm. This comment isn’t given lightly as I have done at least 3 other 1031 exchanges through other intermediaries; your operation is first class.”

I appreciate this client’s willingness to share his thoughts, and it gives me great pride to be a part of the API family. Your hard work and commitment to service have made it possible for the industry to not just survive, but to shine in this difficult business environment. I have been astounded by the resilience, ingenuity, and dedication observed over the past 9 months. At a moment’s notice, our entire industry has been able to devise the means to work remotely, abide by state and CDC policies, and get the job done well. The technical and human challenges were immense for most companies, yet API made it happen– quickly and efficiently. I applaud everyone at API for achieving this unprecedented task.

Thank you for your confidence in API and dedication to the real estate business which sustains us all in these difficult times. I wish you and your families a safe and love-filled holiday season!

Sincerely,


Javier G. Vande Steeg, President

Treasury Regulations-Interview with Tax Expert Lou Weller

Javier G. Vande Steeg, President of Asset Preservation, Inc. (API) interviewed Low Weller, J.D. Partner at Weller Partners LLP, and discussed highlights of the recently released Section 1031 Real Property Treasury Regulations.

Mr. Vande Steeg: Lou, I know you have been involved at a high level in the development of the final “real property” regulations, can you tell us a little history regarding the passage of the new regulations?

Mr. Weller: When the 2017 Tax Cuts and Jobs Act (TCJA) bill changed Section 1031 to apply only to real property, the issue of what is “real property” for this section became more central than when that issue only affected whether something was “like-kind.”  The Regulations under Section 1031 had never defined real property before, but had addressed what real property was like kind: examples being the familiar rules that improved real property is like-kind to unimproved real property and that a tenant interest in a lease of real property with a term of more than 30 years is like-kind to a fee interest in real property.

Since there is now a bright-line test between real property and everything else in terms of qualifying for Section 1031 deferral treatment the IRS decided some clarity was needed and embarked on the Regulations project.

They also decided to solve a problem that had come up in the wake of the TCJA in deferred exchanges due to the new restriction.  Where money from the sale of relinquished real property was used to buy replacement property that consisted of both real property and personal property, advisors got concerned that the qualified intermediary safe harbor from constructive receipt could be compromised if a QI utilized real property proceeds to buy non real estate assets.  Since many real estate transactions involve the purchase of non-real estate personal property (i.e. a hotel purchase also involving lots of furniture), these advisors sought a safe harbor allowing the use of relinquished real property proceeds to buy non real estate property assets as long as the predominant use was to buy real estate.  That’s the genesis of the “incidental property” element of the final regulations.

Read the Full Interview »


We Love Our Happy Customers

I love Asset Preservation. I will continue to recommend you to others. Thank you so much!

  • – DONNA, CALIFORNIA

Webinars: 1031 Exchanges Issues in Today’s Market

 Wednesday, January 6th

11:00 AM – 12:00 PM EST
CPE Credit Available

This one-hour intermediate/advanced webinar provides a concise and thorough overview of 1031 exchanges for accountants, CPAs, and tax advisors. This webinar covers critical time deadlines, like-kind requirements, fractional ownership, oil/gas/mineral rights, related party transactions, partnership/LLC scenarios, reverse and improvement exchanges, and how to avoid common pitfalls.

Learn More & Register »

Friday, March 26th

12:00 PM – 2:00 PM CT
CE Available

This two-hour course for commercial brokers provides a concise and thorough overview of IRC Section 1031 tax-deferred exchanges. This webinar tackles advanced issues such as partnership/LLC scenarios, creative property variations such as perpetual cellular easements (cell towers), fractional ownership, transferable development rights, reverse and improvement exchanges, how to avoid common pitfalls and related-party transactions.

Register Now »


Important Information for Investors Beginning an Exchange

From October 17 – December 31, 2020

Do Not File Your 2020 Income Tax Return Until Your Exchange Has Been Fully Completed.

The time frame you have to complete the acquisition of your replacement property ends at midnight on the earlier of the 180th day after the date you transferred the relinquished property OR the due date (including extensions) for your income tax return for the taxable year in which the transfer of the relinquished property occurs. (U.S. Treasury Regulations section 1.1031(k)-1(b)(2)).

This means if the 180th day following the closing of your first relinquished property falls after the due date for your 2020 tax return (this year, for individuals, April 17, 2021, you must file an application for extension of time with the IRS to extend the due date. If you do not file for an extension, you will NOT be able to acquire any replacement property in your exchange after your tax return due date.

Remember: If your exchange is not completed by the due date of your tax return — FILE AN EXTENSION.

If you have any questions, please call your Exchange Counselor at:

National Headquarters: 800.282.1031  – OR –  Eastern Regional Office: 866.394.1031


Call Us

Asset Preservation would appreciate the opportunity to work with you on your next exchange regardless of how simple or complex.

Give us a call at 800-282-1031 with any 1031 related questions or Ask a Question online.


Top Economic & Housing Experts Predict Post-Pandemic Rebound With Continued Job Growth, Stable Interest Rates

NAR also names its top 10 real estate markets during and in a post-COVID-19 environment.

Read More »

    New Proposed 1031 Real Property Regulations

    By |June 11th, 2020|Categories: Uncategorized|

    Statutory Limitations on Like-Kind Exchanges The proposed regulations provide guidance implementing changes enacted in the Tax Cuts and Jobs Act (TCJA). These proposed regulations amend the existing regulations adding a definition of real property [...]

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    IRS Notice Extends 1031 Exchange Deadlines

    By |April 10th, 2020|Categories: Uncategorized|

    Breaking News On April 9, 2020 the IRS issued Notice 2020-23. This Notice extended many deadlines for taxpayers affected by the COVID-19 pandemic including Section 1031 exchange time deadlines. This Notice provides that any person [...]

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    Top 1031 Exchange Pitfalls

    By |March 10th, 2020|Categories: Uncategorized|

    Top 1031 Exchange Pitfalls Taxpayers should always review all aspects of any 1031 exchange with competent tax/legal advisors familiar with your specific transaction, objectives and the relevant facts. This article addresses some of the [...]

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    20191217-2

    By |December 16th, 2019|Categories: Uncategorized|

    Dear Friends, As the Holidays rapidly approach us, I wanted to take a moment and thank you all for your business, your loyalty, and your work this past year. 2019 was another very busy [...]

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