Articles with advanced
information about how 1031 exchanges work...
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• NEW:
08.20.08-
1031 exchanges can
fail for an assortment of reasons.
If yours looks like it's going
to fail, there
may still be hope! Read this article
to learn how 1031 Exchange Experts
help their clients in this situation....
• NEW:
07.16.08-
Should I sell or should I exchange?
I'd do one if Obama wins, but the
other if McCain wins. But by the
time I know who wins, it's too
late to decide! There's
a simple way to hedge your bets
in this real estate tax conundrum....
• What
intermediary would be so foolish as
to invest in enhanced money market
funds? Unfortunately, many have--and
have lost because they didn't know
the difference....
• The
IRS has just issued a new ruling for
those who wish to 1031 exchange a vacation
home, but it will certainly create
more controversy than it settles....
• The Treasury Inspector General
chided the IRS in 2007 for exercising
very little oversight over the
exchange process. So all that
is about to change....
• Ever wonder if investment gurus follow their own advice? Gary
Gorman, owner of 1031
Exchange Experts, LLC, explains
how HE treats his personal investment
property for a future 1031....
• If your only shot at a 1031 exchange is a drop-and-swap, there are some things that you really must do to lessen the chance that the IRS will disallow your exchange...
•
Most
people seem to miss (or perhaps simply
don’t understand)
that Section 1031 is a “form
driven” code section. This
means you must do exactly what
the code section requires. In other
words, you must dot the i’s
and cross the t’s...
• For
years I’ve been writing articles,
warning about the potential problems
inherent in commingling 1031 exchange
funds. Now after these latest problems,
you’d
think that taxpayers would finally
get it and be concerned about their
money...
• With all
the high-profile problems of various
intermediaries in recent years, what's
next? Some states are taking action;
others are taking cues. Here are a
few predictions about what we might
expect...
• The May
28, 2007 edition of Denver Business
Journal had an interesting story about
the new scrutiny of the 1031 industry
in light of recent QI defalcations.
If you are a Denver Business Journal
subscriber, you can read this article.
If you are not a subscriber, you can
purchase the article here:
• Another sad story
about a 1031 intermediary, bankrupt
and accused of bilking investors
of millions of dollars, illustrating
yet again why savvy investors need
to do their homework before choosing
a QI...
•
Your QI SAYS he
segregates accounts, but how do
you know? If he's dishonest enough
to lie to you about his commingled
accounts, will he be trustworthy
to manage money on your behalf?
Read this to learn how to spot an
honest QI, and the disaster that
might happen if you don't...
•
It's not the first time, and unfortunately
it won't be the last: another QI
gets caught in shady dealings with
the client's money. Read here to
learn what to look for, and what
The Experts are
doing about it on behalf of their
clients...
•
Once again, a bad QI made off with
his client's money, and once again
it was made possible by a commingled
account. This article will show
you how to avoid this situation
by protecting yourself...
•
Of course the bad QI gets punished
by the judge when he plays hard
and fast with his client's money,
but the buck doesn't stop
there... Read here to see how the
innocent clients got
punished, and what you can do to
avoid this in your own situation...
• A popular
tax-deferral trick for real-estate
investors is facing scrutiny as key
middlemen in the strategy run into
financial trouble. If you are a Wall
Street Journal subscriber, you can
read this article online. If you are
not a subscriber, you can purchase
the article here:
• Gorman
said 95 percent of qualified intermediaries
commingle funds, mainly in order to
collect interest from their clients’ money,
which creates huge problems.
“...it’s virtually impossible
to figure out who has what slice of that
pot,” he said.
•One of the
ongoing controversies about TICs is
whether they are real estate or a security.
Which license do you need to sell them – a
real estate license or a security license...?”
• The
April 23, 2007 edition of Forbes Magazine
released an interesting story that
illustrates the importance of choosing
reputable QIs. If you are a Forbes
subscriber, you can read this article.
If you are not a subscriber, you can
purchase the article here:
• This is
a real cause for concern: this is the
first time I've seen the IRS challenge
a state's right to define for themselves
what 'real estate' is for the purposes
of a 1031 exchange....
• How can
1031 exchange company management pay
for an exec jet, $3000 hotel rooms,
$1000 nightly meals, expensive mansions
and a Mercedes for their former investment
manager? Simple: Use clients’ money.
The FBI is now involved....
• Fred & Sue
lived in a home for five years until
they moved. Unable to sell, they rented
it for two years, and now the tenant
wants to buy it. Since they meet the
requirements of both code sections,
which option should Fred and Sue take?
•Section
1031 requires the use of a Qualified
Intermediary only if you cannot sell
your Old Property and buy your New
in a simultaneous closing. A simultaneous
closing is easy if you are trading
properties with your buyer...
Articles
and videos with basic information
about how 1031 exchanges work...
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•While
many real estate investors are
learning that a one-size-fits-all
tax-strategy doesn't exist, The
Wall Street Journal's Arden Dale
asks Gary Gorman what strategies
are in the cue as we approach the
2008 election season....
Articles in this series: Bare Bones Basics
of a 1031 exchange
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• Section
1031 allows you to sell your
old investment property, buy
a new one,
and defer all of the capital
gains taxto
the new. This does three things
for you....
• Too
many people think that
profit, or gain,
is simply what you sold
your old property for minus
what you bought it for.
Most of the time that’s
not accurate...
• If
you know what you're doing,
you can make money in any
kind of investing. But for
the average investor, real
estate presents an especially
good choice.
• 1031
exchanges as we know them
have been around since
'91. Most people in real
estate have a good working
grasp of them,
but some have not heard
of 1031 exchanges...
• At
the offices of the 1031 Exchange Experts,
it astonishes us each time we hear
a potential client choose to go with
another company because of cheaper
fees. Arizona’s KTAR.com just
broke a story of a 1031 exchange
husband and wife team that, if convicted,
could face a combined 82 years in
prison....
Gary
Gorman Interview on The Entrepreneur
Magazine Legal Show - 04.14.05