Imposing the Failure to Withhold Penalty Against Qualified Intermediaries Who Actively Participate in Certain Improper Like-Kind Exchange Transactions

The purpose of this Notice is to inform qualified intermediaries ("QIs") that the Franchise Tax Board ("FTB") will impose failure to withhold penalties against QIs who actively participate in structures where boot or proceeds from an attempted like-kind exchange are converted into an installment note or similar arrangement in which payments are to be paid out over two or more years. These penalties may be imposed beginning with attempted like-kind exchanges in which property is relinquished on or after March 24, 2020.

Important Information for Investors Beginning an Exchange

From October 17 – December 31, 2019

Do Not File Your 2019 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 2019 tax return (this year, for individuals, April 17, 2020 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
Eastern Regional Office: 866.394.1031

Executive Global Interview with Javier G. Vande Steeg

Click here to read a Fall, 2019 interview of Javier G. Vande Steeg, Asset Preservation’s President and Co-Founder by Executive Global. Mr. Vande Steeg talks about 1031 tax deferral, wealth creation and other issues of interest to business owners and real estate investors. Executive Global offers a unique insight into the state of global business in the contemporary age, bringing together the most renowned business personalities and economists of the modern era to deliver the statistics, thorough analysis, strategy, and foresight required to make informed business decisions.

Tax Relief for Victims in Disaster Situations

Requirements for Postponement of 1031 Exchange Time Periods

Special tax law provisions may help taxpayers recover financially from the impact of a disaster such as a flood, hurricane, tornado, wildfire or certain other natural disasters or catastrophic events, particularly when the federal government declares a location to be a Presidentially-declared disaster area often referred to as a federally-declared disaster. If the IRS releases an official notice, then Section 17 of Revenue Procedure 2007-56 provides extensions of certain time deadlines in a 1031 exchange.

The U.S. States People Are Fleeing (And The Ones They Are Moving To)

How Housing Wealth Transferred From Families to Corporations

From the closing on the sale of the relinquished property, an exchanger must: (1) properly identify potential replacement properties within 45 calendar days (the “Identification Period”) and; (2) close on the replacement property(ies) within 180 calendar days of the transfer of relinquished property sale (the “Exchange Period”). To access a calculator and determine your 45-day Identification Period and 180-day Exchange Period, click here…

Purchasing Replacement Property from a Builder

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