Happy Holidays From API’s President 

To all of our Clients and Associates,

Happy Holidays! As 2014 winds down, I must say that it has been quite a year. 2014 brought us enormous transactional volume, iconic U.S. property exchanges, art and collectible activity, and a resurgence in activity in the “alternative investment” market for replacement property. Both the residential and commercial property markets were extremely active as investors took advantage of newly found appreciation, and utilized 1031 exchanges to enhance their real property investment positions. All said, it was a very good year for all of us in the investment property market.

As I look forward to 2015, I see much of the same growth and prosperity, with one important caveat: the real estate industry saw a serious attack on Section 1031 exchanges as part of tax reform in 2014. Congress and President Obama have put forth three separate proposals which either completely eliminate or restrict tax-deferred 1031 exchanges. If 1031 exchanges are eliminated, obviously this would be detrimental to real estate investors, and would negatively affect the economy and many ancillary real estate-related services. If you would like to learn more and to consider adding your voice to the efforts to repeal 1031 exchanges, please visit www.1031taxreform.com.

I want to thank our long-term customers, and those customers who have worked with Asset Preservation for the first time this year. As we enter our 25th year of providing excellent service and the highest level of security for exchange proceeds, we are very grateful for the opportunity to be your qualified intermediary of choice. I wish you a safe and joyous Holiday Season and I look forward to working with you again in 2015.

Javier G. Vande Steeg

Javier G. Vande Steeg, President

 Do You Have A Property Closing in December? 

Rush Deal

Many investors and their advisors have real estate transactions closing near the end of December. If you or your client have an investment property transaction closing before the end of 2014 – and you have not already set up a 1031 exchange – keep in mind Asset Preservation is available to set up your exchange at the last minute! We can often set up a new 1031 exchange, converting an otherwise taxable sale into a tax deferred transaction, within an hour. A properly structured exchange provides an investor with up to 45 calendar days to potentially find suitable replacement property. For more information, please call us toll-free at 800-282-1031 or via email at info@apiexchange.com.

 2014 Year-End Tax Planning 

Exchanges Over Two Tax Years May Be Treated As An Installment Sale

In a delayed exchange transaction structured to satisfy the requirements of §1031, an exchanger has up to 180 calendar days to acquire like-kind replacement property measured from the day the relinquished property is sold. Once initiated, the delayed exchange may be successfully completed (resulting in complete tax deferral), partially completed (resulting in recognition of some capital gain) or it may fail if no like-kind replacement property is acquired (resulting in the recognition of all capital gain generated by the sale). If the exchange begins in one tax year and extends into the subsequent tax year, the question arises whether the gain realized on the sale is recognized in the year in which the relinquished property was sold or in the subsequent year in which the exchanger received the cash sale proceeds from the qualified intermediary.

In a perfect world, gain would be recognized in the subsequent year when the proceeds were actually received by the exchanger. In many cases, this turns out to be wholly or partially true. Read More…

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Home Prices Forecasts for 2015

To see housing forecasts for 2015 from Fannie Mae, Merrill Lynch, MBA, NAHB, NAR, Wells Fargo and Zillow, Read More…

 Dispositions Of Tangible Property 

Recently, the IRS issued final regulations on dispositions of tangible depreciable property under Sec. 168 (T.D. 9689) that are generally effective for taxable years beginning on or after January 1, 2014. Taxpayers can realize significant benefits from these regulations by identifying building components that have been replaced or demolished in current or prior years. Read More…

 Congress Threatens To Eliminate 1031 Exchanges 

Congress Threatens to
                                        Eliminate 1031 Exchanges

Three separate tax reform proposals have been advanced by the House Ways and Means Committee, the Senate Finance Committee and the Treasury Department to either repeal or restrict tax deferral of gain from Section 1031 exchanges of like-kind property.

Like-kind exchanges benefit millions of American investors and businesses every year. 1031 exchanges encourage businesses to expand and help keep dollars moving in the U.S. economy.

Without the tax-deferral benefit that 1031 exchanges provide, small and medium sized businesses would not be as equipped to reinvest in their businesses, real estate values would decline, the U.S. economy would suffer, and businesses of all sizes would lose the opportunity to expand. The repeal of Section 1031 will cause a decline in real estate values as investors will be motivated to hold on to properties and to invest in more liquid, non-real estate investments with faster returns. The proposals effectively impose punitive and targeted tax increases on economically sound commercial real estate investment, the likely unintended consequence of which will be similar to implementation of 1986 tax reform modifications that resulted in a recession.

Take Action Now!
Send a strong message to congress that 1031 exchanges are a powerful economic tool. Learn more and voice your opposition to these proposals with these critical actions at 1031taxreform.com.

 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 you may have.  Or to open a 1031 exchange online, email us at info@apiexchange.com.

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 The College Town Effect On House Prices 

Clear Capital has a new report showing college towns unique immunity to boom-bust-bubble cycle. According to the firm’s Home Data Index Market Report, metropolitan statistical areas (MSAs) with noteworthy university influence boast home price trends that far outperform the national rates of growth since 2004. Read More…

 1031 Exchange Resources 

Open a 1031 ExchangeOpen
an Exchange

1031 Exchange Materials1031

1031 Exchange NewsPast

1031 Exchange Webinar and PodacatWebinar/Podcast