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Here is a brief update regarding 1031 exchange activity from Stewart’s 1031 exchange qualified intermediary, Asset Preservation, Inc. (API):
- 1031 Exchanges are up Significantly: The increase in prices and rents for both commercial and residential investors has led to a huge increase in 1031 exchange activity with many more investors choosing to set up a 1031 exchange prior to closing to obtain tax deferral. By all indications, 1031 activity is up 15-20% more from last year.
- The 3.8% Net Investment Tax Remains in the Tax Code: The failure of Congress to agree on healthcare reform means that the 3.8% net investment income tax (NIIT) that affects many investors in higher tax brackets remains. This added tax is another factor driving the surge in 1031 exchange activity.
- 1031 Exchanges Continue to be at Risk with Tax Reform: Congress continues to look at repealing or limiting 1031 exchanges as a “pay-for” to accomplish tax reform. Visit 1031taxreform.com for the latest updates and to share your concern about how eliminating exchanges could negatively affect investors and the real estate market.
- Reverse Exchanges up Considerably: In many markets, the lack of inventory creates a problem for investors facing the 45/180 day time deadlines. As investors find off-market and other desirable replacement properties that need to close quickly, they are turning in increasing numbers to reverse exchanges where they can close on the purchase before closing on the sale of their investment property.
ASSET PRESERVATION: A QUALIFIED INTERMEDIARY RESOURCE
Whenever a customer is selling any non-owner occupied property (land, single family rental, commercial, vacation home, etc.), suggest that they talk to their tax/legal advisor about the tax deferral benefits of a 1031 exchange. In addition to being an excellent source of 1031 exchange information for customers, Asset Preservation provides qualified intermediary services nationwide with responsive customer service. Feel free to provide Asset Preservation’s toll-free phone number (800-282-1031) and The Power of Exchange™ informational brochure. Contact Asset Preservation if you need hard copies of these brochures.
HOW TO CONTACT ASSET PRESERVATION
To initiate a new 1031 exchange or to have any 1031 exchange questions answered, contact Asset Preservation:
CA: 800-282-1031 - National Headquarters in California
NY: 866-394-1031 - Eastern Regional Office supporting the Eastern Time Zone
Email: info@apiexchange.com - API’s email monitored by Senior Management both during and after normal business hours
Website: apiexchange.com - Access resources for closers or for your clients on API's website: apiexchange.com/1031-exchange-library/
Since 1990, Asset Preservation, Inc. (API) has been a leading national qualified intermediary and has successfully completed over 160,000 tax-deferred exchanges. Additionally, API provides unmatched security for the management of exchange funds including the financial strength and backing of Stewart Information Services Corporation (NYSE: STC) under a written “Letter of Assurance” provided on request. API management maintains tight financial controls and multi-layered security systems necessary to provide a level of comfort and the quality of performance relied on by sophisticated investors and Corporate America; we call it the “The API Advantage™.” To find out more about 1031 exchanges, please review our Power of Exchange™ informational brochure and 1031 Exchange Checklist along with links to our website, apiexchange.com.
We look forward to being an excellent resource to you and your customers regarding 1031 exchanges.
SCOTT R. SAUNDERS
Sr. Vice President
ASSET PRESERVATION, INC.
84 Highway 105, Suite A
Palmer Lake, CO 80133
O 888.531.1031 | 719.481.9788
D 916.945.3537 | F 704.943.5675
apiexchange.com | scott@apiexchange.com
HQ 800.282.1031 | NY 866.394.1031
Congress Threatens to Eliminate §1031 Exchanges: Take Action Now!
A Stewart Subsidiary (NYSE: STC)
Asset Preservation, Inc. (API) is a qualified intermediary as defined in the regulations under Internal Revenue Code §1031. Neither API, nor its officers, directors, or employees, are authorized or permitted under applicable laws to provide tax or legal advice to any client or prospective client of API. The tax-related information contained herein, or in any other communication that you may have with a representative of API, should not be construed as tax or legal advice specific to your situation, and should not be relied upon in making any business, legal or tax-related decision. A proper evaluation of the benefits and risks associated with a particular transaction or tax return position often requires advice from a competent tax and/or legal advisor familiar with your specific transaction, objectives, and the relevant facts. We strongly urge you to involve your tax and/or legal advisor (or to seek such advice) in any real estate or business-related transaction.
Confidentiality Notice: This message may contain confidential and privileged material for the sole use of the intended recipient(s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive from the recipient), please contact the sender and destroy all copies of the message.
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