<p>Join Dan Raupp of Fortitude Investments, and David Gorenberg, Managing Director of Accruit, as they discuss the basics of 1031 exchanges, and replacement property options including NNN, TICs, DSTs and more.</p>

<p>Date: Thursday, December 3rd, 2020</p>

<p>Time: 09:00 AM-10:30 AM EST<br />
Location: Online</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>In this 1-1/2 hour webinar, you'll:&nbsp;</p>

<ul>
<li>Learn the basics of 1031 exchange, including the process and different types of exchanges</li>
<li>Know how and why to leverage the benefits of 1031 exchange as it relates to various replacement property options, including NNN, TIC, DST, and oil and gas royalties.</li>
</ul>

<p>This webinar is presented in collaboration with <a href="https://www.fortitudeinvestments.com/">Fortitude Investment Group</a>.</p>
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<h2>About the Speakers:&nbsp;</h2>

<h3>Daniel Raupp, Managing Partner, Fortitude Investment Group</h3>

<p><img alt="Daniel Raupp Headshot" src="/sites/default/files/files/Dan%20Headshot.jpg" style="margin-left:30px; margin-right:30px; width:100px; height:150px; float:left" /> Daniel Raupp is a co-founder and the Managing Partner of Fortitude Investment Group, where he leads the company’s wealth management practice with particular focus on real-estate private equity and helping clients with tax-efficient investment solutions in the area of 1033 and 1031 eligible asset-back securities. Dan began his career in Charlotte, NC with Bank of America in 1999 and parlayed that early experience into a profession where he has been widely recognized for his work in venture capital, investment banking and real estate. Dan is an active member of several charitable organizations, including GLADS.org, a non-profit committed to helping place people with down syndrome with adopting parents. Dan lives in New York with his family of four daughters and his beautiful wife.</p>

<p>&nbsp;</p>

<h3>David Gorenberg, Esq., CES ®, Managing Director, Accruit</h3>

<p><img alt="David Gorenberg Headshot" src="/sites/default/files/files/David%20Gorenberg%20Headshot.jpg" style="margin-left:30px; margin-right:30px; width:100px; height:150px; float:left" />A dedicated and successful professional, David Gorenberg has over twenty years of experience in business development and public speaking. His dynamic personality enables him to make effective presentations to groups both large and small, at all professional levels. David has written and spoken extensively on&nbsp;1031 Exchange&nbsp;transactions pursuant to Section 1031 of the&nbsp;Internal Revenue Code&nbsp;, and Tenant-In-Common (TIC) and Delaware Statutory Trust (DST) investment properties as&nbsp;like-kind&nbsp;replacement property&nbsp;solutions for 1031 Exchange transactions pursuant to IRS Revenue Procedure 2002-22 and Revenue Ruling 2004-86.</p>

<p>Prior to joining Accruit, he was with Wilmington Trust, where he served as the Vice President and Product Leader for Wilmington Trust 1031 Exchange, LLC out of Wilmington, DE. Prior to that, he spent six years with Citibank’s 1031 operations, where he built their 1031 Exchange service from the ground up, ultimately generating over $850 million in annual deposits for the bank. In addition he has held leadership positions with three other national Qualified Intermediaries (Accommodators). Prior to becoming a full time&nbsp;Qualified Intermediary&nbsp;, David managed a successful law practice, where he was involved in business and real estate transactions. In that capacity, David has guided his clients through 1031 Exchange transactions since 1992.</p>

<p>&nbsp;</p>

<p>After the real estate transactions in a 1031 exchange have been completed, there is a final step to report the exchange to the IRS so that the deferral is recognized. <a href="https://www.irs.gov/instructions/i8824&quot; target="_blank">Filing form 8824</a> is not simply "another" tax form. It is a critical step to appropriately document that a like-kind exchange has occurred. Once those financial statements are complete, accountants can utilize this information to prepare related tax returns. For owners who have completed a <a href="https://www.accruit.com/blog/understanding-like-kind-requirement-1031-e…; title="1031 like-kind exchange">1031 like-kind exchange</a>, Form 8824 will need to be prepared and filed with the Internal Revenue Service (IRS).</p>

<h2>What is Form 8824?</h2>

<p>Titled, “Like-Kind Exchanges (and section 1043 conflict-of-interest sales)," Form 8824 serves two primary purposes:</p>

<ul>
<li>To allow business owners to report the deferral of gains through Section <a href="https://www.accruit.com/blog/primer-1031-exchanges-and-related-types-ex…; title="1031 tax deferred exchange">1031 tax deferred exchange</a> transactions</li>
<li>To allow certain members of the Federal Government to report the deferral of gain through conflict-of-interest sales</li>
</ul>

<p>The form is divided into four distinct parts, including:</p>

<ul>
<li>Part I – Information on the like-kind exchange</li>
<li>Part II – Related Party Exchange Information</li>
<li>Part III - Realized Gain or (Loss), Recognized Gain, and Basis of Like-Kind Property Received</li>
<li>Part IV – Deferral of Gain From Section 1043 Conflict-of-Interest Sales</li>
</ul>

<h2>Part I – Information on the Like-Kind Exchange</h2>

<p>This section covers the basics of the <a href="https://www.accruit.com/property-owners/1031-exchange-explained&quot; title="1031 exchange">1031 exchange</a>, including:</p>

<ul>
<li>Description of the like-kind property (given up)</li>
<li>Description of the like-kind property (received)</li>
<li>Date the given-up property was originally acquired</li>
<li>Date the received property was actually received</li>
</ul>

<p>Part one also asks if any like-kind property was either sold to or purchased from a related party. If the answer is yes, then the form’s preparer must complete Part II. If the answer is no, then the preparer may skip Part II and move on to complete Part III.</p>

<h2>Part II – Related Party Information</h2>

<p>It’s interesting to note, this section does not require any calculations. It simply asks for some basic information about the related party transaction, including:</p>

<ul>
<li>The related party’s name, address and relationship</li>
<li>Timing of any dispositions (by the related party) of the property received from property owner</li>
<li>Timing of dispositions related to the property acquired</li>
</ul>

<h2>Background on Related Parties</h2>

<p>Part II addresses very specific concerns regarding what is known as basis shifting. In these transactions, <a href="https://www.accruit.com/blog/1031-tax-deferred-exchanges-between-relate…; target="_blank">related parties were working together by exchanging low basis property for high basis property</a> with the immediate plans to sell, at a gain, the lower basis property. By following this strategy, related taxpayers were effectively reducing the gain on the sale of the low basis property. For like-kind exchange purposes, related parties are defined under Internal Revenue Code Section 267(b) or 707(b)(1) and can include:</p>

<ul>
<li>Family members, including brothers and sisters, husbands and wives, lineal descendants, ancestors</li>
<li>Individuals and corporations, where more than 50% of the value of the stock is owned directly or indirectly by or for the individual</li>
<li>A corporation and a partnership if the same persons own more than 50% in the value of the outstanding stock of the corporation and more than 50% of the capital interest or profits interest in the partnership.</li>
</ul>

<h2>Part III – Realized Gain or Loss, Recognized Gain, and Basis of Like-Kind Property Received</h2>

<p>This entire section is dedicated to determining the results of the like-kind exchange. Of the 14 total lines contained within this section, eight are simple addition and subtraction fields. This leaves the form’s preparer with some additional work to gather the data for the remaining six fields. It’s critical to avoid being fooled by the form’s apparent simplicity. The tax preparer must understand the precise meaning of this section’s terminology and each line’s requirement in order to complete the form correctly. Amongst other things, Part III will require the following:</p>

<ul>
<li>Fair market value and adjusted basis of other property given up</li>
<li>Cash received and fair market value of other property received</li>
<li>Net liabilities received by the other party</li>
</ul>

<h2>Part IV – Deferral of Gain From 1043 Conflicts-of-Interest Sales.</h2>

<p>This section, although provides a reporting requirement for a deferral of Gain, has little to do with a like-kind exchange. Part IV requires reporting on capital gains deferral on the sale of the property that would cause a conflict for those serving as an officer or employee of the executive branch of the federal government. Congress enacted section 1043 to further the collective good by eliminating a tax-based barrier for entry into public service. Interesting, but not relevant to 1031s.</p>

<h2>Summary</h2>

<p>For the vast majority of property owners, part IV of Form 8824 will simply not apply, and as such it can be ignored. However, property owners should carefully report each and every exchange of like-kind property using the first three parts of this form. In doing so, property owners can effectively communicate to the IRS why the disposition(s) of their real estate, should not trigger any income taxation.</p>

<p>Accruit is a&nbsp;<a href="https://www.accruit.com/property-owners/work-with-us&quot; tabindex="-1" title="1031 Exchange Qualified Intermediary">1031 Exchange Qualified Intermediary</a>&nbsp;and facilitates 1031 exchanges. Always consult your CPA or tax advisor for advice pertaining to your specific tax situation. For more information, visit&nbsp;<a href="https://www.accruit.com/&quot; tabindex="-1" title="www.accruit.com">www.accruit.com</a>&nbsp;or call (800) 237-1031.</p>

<hr />
<p>&nbsp;</p>
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<p>When it comes to conducting a safe-harbor 1031 Exchange, there's a set process that must be followed in order to stay clear of the grim reaper. The regulations impose a set of rules ensuring you can’t ‘trick” your way into an exchange. The safe-harbor guidelines provided by the Internal Revenue Code reward you with a “treat” by allowing a deferral of taxes on the gain of your investment and allowing you to properly reinvest into a like-kind property. This allows small and medium sized businesses to move, grow and diversify.</p>

<p>In honor of 10/31, the best date on the calendar in our opinion, we decided to have a little fun and play around with the top ten reasons an exchange might fail—with an added Halloween twist.</p>

<p>&nbsp;</p>

<p><strong><span style="color:#e67e22;">Number 10</span>: Identify after midnight on the 46th day</strong></p>

<p>The period of time allotted for identifying replacement properties is 45 days from the sale of the relinquished property. This period of time is known as the identification period. In general, this deadline cannot be extended.</p>

<p><strong>Number 9: <span style="color:#e67e22;">Allow a vampire to exchange his personal coffin for a vacation coffin</span></strong></p>

<p>1031 exchanges are limited to real estate that is intended for business use or investment. In the case of most personal and vacation homes, a 1031 exchange would not be permissible. There are, however, some circumstances in which a personal residence or vacation property could be eligible.</p>

<p><strong><span style="color:#e67e22;">Number 8</span>: Claiming that real property in Pennsylvania is like-kind to real property in Transylvania</strong></p>

<p>1031 exchanges are limited to properties that are both located within the United States. This includes some, but not all US Territories.</p>

<p><strong>Number 7: <span style="color:#e67e22;">Pushing 1031 as simply an avoidance of a “DEATH TAX”</span></strong></p>

<p>1031s are never an avoidance of a tax. It is a deferral of gain recognition allowing for continuity of investment. In fact, studies have shown that 88% of properties involved in a 1031 exchange are sold in a taxable transaction, and about a third of transactions have some taxable boot received at the time of sale (Reference recent FEA post).</p>

<p><strong><span style="color:#e67e22;">Number 6</span>: Selling to or buying property from Deceased family members&nbsp;<img alt="haunted cemetery scene" src="/sites/default/files/files/severed-hand-V4C6FE3.jpg" style="margin-left:20px; margin-right:20px; width:250px; height:167px; float:right" /></strong></p>

<p>An informed Qualified Intermediary, like Accruit, can guide you through the rules when it comes to exchanging your property. Exchanging with a family member MAY jeopardize your entire exchange. When it comes to related parties, Congress added an amendment to Section 1031 in 1989 to stop abuse that was happening whereby investors were exchanging with related parties as an effort to skirt the rules. (link to: https://www.accruit.com/blog/1031-tax-deferred-exchanges-between-relate…) There are very few exceptions to this rule, so it’s important to be aware or your exchange could end up in a graveyard.</p>

<p><strong>Number 5: <span style="color:#e67e22;">Exchanging your mausoleum for a hearse</span></strong></p>

<p>As of 2017, personal property no longer qualifies for like-kind exchange. Previously, property such as vehicle fleets, construction equipment, or even airplanes were eligible to exchange, as long as they were like in kind (i.e. a plane for a plane, or a tractor for a tractor). With the elimination of personal property, only real estate is eligible for 1031 exchange. However, all real estate is like-kind to other real estate, which means you can exchange your mausoleum (commercial building) for a cemetery (raw land).</p>

<p><strong><span style="color:#e67e22;">Number 4</span>: Thinking your abnormal deranged brother with a cue ball as an eye is your QI</strong></p>

<p>A 1031 exchange requires the use of a Qualified Intermediary (QI), such as Accruit. If the taxpayer is in receipt of funds following the sale of their relinquished property, this becomes a taxable event, and the exchange fails. The QI must not be related to the taxpayer, and they may not use their Realtor®, attorney, or accountant to hold funds either.</p>

<p><strong><img alt="haunted house on a hill with ominous skies" src="/sites/default/files/files/abandoned-house.jpg" style="margin:0px 20px; width:251px; height:167px; float:left" />Number 3: <span style="color:#e67e22;">After identifying a property, claim it is haunted to get your exchange funds returned early</span></strong></p>

<p>Once an exchange has started, the regulations are very strict as to when funds are allowed to be released to the taxpayer. Barring the occurrence of a limited and specific set of circumstances, funds are held by the QI until the completion of the 180-day exchange period (link to https://www.accruit.com/blog/early-release-exchange-funds-possible-unde…)</p>

<p><strong><span style="color:#e67e22;">Number 2</span>: Insisting the form you file with the IRS to claim your LKE is Form-666, not 8824</strong></p>

<p>Following the completion of an exchange, the taxpayer will receive a 1099 for the amount of interest that was accrued on the exchange deposit. This should be reported as income, and the exchange transaction is reported to the IRS on form 8824.</p>

<p><strong>And the number 1 way to KILL a 1031 exchange: <span style="color:#e67e22;">Comingle </span>your <span style="color:#e67e22;">exchange </span>funds <span style="color:#e67e22;">with </span>your <span style="color:#e67e22;">Halloween</span> candy (<span style="color:#e67e22;">we're officially terrified</span>)</strong></p>

<p>When selecting a QI, not only should the right QI adhere to industry standards of segregated accounts, but your QI should also inform you that there are some states that mandate how exchange funds should be held. Don’t be fooled by a low-cost QI wearing a trusting mask. Not for your 1031. If the offer just sounds too good to be true, BE SCARED—be very, <em>very </em><span style="color:#e67e22;"><strong>SCARED</strong></span>.</p>

<p>Have a happy and successful 1031 day!</p>

<p>This will be a discussion of the general concepts of 1031 tax-deferred exchanges of real estate, including the technical and chronological requirements as well as the process, procedures and different structures. Attorneys in attendance will come away with a basic working knowledge of 1031 transactions, and recognize some of the terminology and instances where a client may want to consider a 1031 exchange transaction or need the services of a professional qualified intermediary (QI), exchange accommodation titleholder (EAT), or registered investment advisor (RIA) in acquiring like-kind replacement property.</p>

<h2>presented by</h2>

<p>Jordan Born, Accruit</p>

<p>Joseph LoPresti, Arlington Wealth Management</p>

<p>When: Wednesday, November 11th, 8:15-9:30AM CST</p>

<p>Where: Online</p>

<p>MCLE approved for 1-hour credit</p>

<p>Registration is Free for IRELA Members</p>

<p>Non-Members ~ $50</p>
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<p>In this post, we&nbsp;will take a brief look into the evolution of Section 1031 to show why it was critical along the way to make use of an “Exchange Cooperation Clause” and why, as the rules changed over time, such use is no longer necessary.</p>

<h2>The Starker case</h2>

<p>Section 1031 made its way into the Tax Code in 1921, nearly a hundred years ago. At that time, until the mid-1980s, the sale and purchase were thought to need to take place “simultaneously”, after all, isn’t that the commonsense definition of a trade between two people? Apparently not. Beginning in the late 1970s and continuing into the mid-1980s, in the landmark case of Starker vs. U.S., it was determined by a Federal District Court in California that there did not appear to be any requirement in the plain language of Section 1031 of simultaneity.</p>

<blockquote>
<p>“No gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a like kind to be held either for productive use in a trade or business or for investment”.</p>
</blockquote>

<p>This seemingly innocuous ruling opened up a Pandora’s Box of opportunity, not to mention confusion. The period of time for completing the trade with his buyer in the Starker case was five years. In 1986, shortly after the decision came out, Congress chose a legislative fix. It agreed that Section 1031 did not require the exchange of the properties to take place at the same time but decided to limit the open ended duration to complete the trade of the one for the other to 180 days. Essentially that limited time period still allowed the two transactions to be close enough in time to be considered to be tied to one another. But anything of a longer period simply broke the link between the sale and the purchase into unrelated (for tax purposes) transactions.</p>

<h2>Identification and purchase period to qualify for 1031 exchange</h2>

<p>As for the opportunity presented, taxpayers had <a href="https://www.accruit.com/blog/what-are-rules-identification-and-receipt-…; target="_blank">45 days to identify potential properties and 180 days to close on one or more of the properties</a> designated. This was much easier than trying to pull together a sale and a purchase at the same time. Instead of being a somewhat little used provision to defer tax, exchanges began to flourish as a result of the extended window to complete the exchange.</p>

<p>But practical problems abounded. One of the biggest problems was what to do with the buyer’s funds during the interim period between the sale and purchase? Section 1031 still required an actual exchange between the taxpayer and the buyer. If the seller took the funds and applied them within 180 days, that was not sufficient. The moment the taxpayer received the funds, the matter became a taxable sale whether or not new property was acquired within the time limits. It was not akin to the old rules where you could get deferral on the sale of a personal residence if you bought a new one within two years. One solution was to allow the buyer to retain the funds with the contractual obligation to use them to buy the new property once the seller was ready to do so. That has so much obvious risk that it doesn’t have to be explained.</p>

<p>Creative lawyers at the time came up with an effective solution. Keep the exchange relationship open between the taxpayer and buyer but place the buyer’s purchase price into a trust account with a third party to keep it out of the taxpayer’s receipt. This also had the benefit of keeping it out of the buyer’s possession or control.&nbsp;A name quickly followed for this procedure and it was affectionately called a <span class="no-lexicon">Starker Trust</span>!</p>

<p>Now we are getting close to the point of this blog. Starker Trusts could be fifteen pages long and filled with legalese. From the buyer’s standpoint, he or she saw the property listed for sale and negotiated a deal. The buyer came to closing with the applicable funds. However, in the case of a seller doing an exchange, at closing the seller (or seller’s lawyer) would ask the buyer to enter into the Starker Trust for the seller’s benefit. But the buyer would often balk. Sometimes there was simply bad blood between the parties by the time of closing. Other times buyers were reluctant generally to get involved in a tax matter that did not otherwise involve them. It was not unusual for the buyer to agree only if the buyer’s lawyer read and approved it and the seller agreed to pay the attorney fees.</p>

<h2>What is an Exchange Cooperation Clause?</h2>

<p>The only way the seller could obligate the buyer to sign the necessary agreement was to provide for that buyer’s obligation in the body of the purchase/sale agreement. Hence a clause began appearing in contracts for this purpose requiring the buyer to execute the Starker Trust agreement. That became know as the Exchange Cooperation Clause and it was good policy at the time.</p>

<p>In regard to the Pandora’s Box mentioned above, many unresolved issues arose pertaining what could, and could not, be done for a seller to attain exchange status. These included such issues as:</p>

<ul>
<li>Who could retain the benefit of the interest accrued on the Starker Trust deposit</li>
<li>Who was eligible to hold the funds in the Starker Trust</li>
<li>Were there other ways to secure the buyer’s obligation to provide replacement property to the taxpayer</li>
<li>If the taxpayer picked out new property for the buyer to acquire to trade back to the taxpayer, did the buyer have to come into the chain of title</li>
</ul>

<h2>Where does the Qualified Intermediary come in?</h2>

<p>In response to these questions and many more, in 1991, the 1031 Treasury Regulations were issued to provide some guidance. At the heart of the Regulations was the introduction of a new player within the exchange, namely the Intermediary. Certain persons in an agency relationship with the taxpayer were “disqualified” from acting as the intermediary but anyone else was deemed “qualified”. Hence the term Qualified Intermediary (QI) came into being. This is what gave rise to the many exchange companies, such as Accruit, that exist today.</p>

<p>The main function of the QI was to stand in the shoes of the buyer as a party with whom the taxpayer could effectuate an exchange. Through a series of steps set forth in the regulations, for tax purposes, the taxpayer was selling to the QI (who caused the property to go the buyer) and the QI acquired replacement property from the seller and transferred it to the taxpayer. As a result, an exchange was deemed to have taken place between the taxpayer and the QI. So, the buyer was not a party to the seller’s exchange transaction and had no need to cooperate. The regulations also set up several options in regard to holding the funds during the transaction including letting the QI hold them. This is what is typically done in an exchange today.</p>

<h2>Is an Exchange Cooperation Clause necessary?</h2>

<p>So, for nearly thirty years, there has been no requirement for the buyer to cooperate in the seller’s tax transaction, but old habits die hard. In today’s world, due to the series of steps referred to above, the seller does have to assign the rights under the sale contract to the QI and notify the fact of this limited assignment to the parties to the contract. The parties receiving the written notice (mainly the buyer and later the seller) are not required to agree, cooperate or even to sign acknowledging receipt. They often sign receipt as a courtesy, but it is not required by the regulations. The same thing must be done with regard to the replacement property contract. This assignment in not tantamount to an outright assignment of the whole contract to a third party, rather it is just the assignment of the seller’s rights (but not the obligations) in the contract for purpose of getting tax deferral. As a matter of general law, if a contract has no restriction against assignment, and most don’t, the person has the legal right to make an assignment. However, if a contract, or state law, included a restriction on assignment, even just of the “rights” to treat it as an exchange, a counterparty in the sale or purchase agreement might be able to thwart this as a technicality. As a result, in today’s contracts, even when there is no restriction against assignment, just to be safe, a clause is usually found in the preprinted contracts or added, along the lines as follows:</p>

<blockquote>
<p>“Each of the parties hereto may assign its rights (but not its obligations) to a Qualified Intermediary as defined in the IRC Code Section 1031 Treasury Regulations. Said exchange will be closed without cost, liability or delay to the non-exchange party.”</p>
</blockquote>

<p>In summary, as the rules evolved under IRC Section 1031 since its inception, at one time it was very important to have a clause in the sale contract requiring the buyer to “cooperate” in the seller’s exchange transaction. One of the primary changes to the need for the buyer to participate was in the heart of the 1991 Treasury Regulations substituting in a third party, namely the Qualified Intermediary to remove the buyer from any need to cooperate. As a result, an “exchange cooperation clause” because irrelevant. To this day people tend to put emphasis on this clause because it was necessary so many years ago. In the modern era, post-1991, the only requirement for a taxpayer in this regard is to assign the rights under the contract and provide written notice of the fact. There is no requirement for the buyer to cooperate in any way.</p>

<hr />
<p>&nbsp;</p>
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<p>As members of the Federation of Exchange Administrators (FEA), Accruit is an active participant in the work that is being done to preserve Section 1031 of the Internal Revenue Code. The FEA is incredibly important to our industry and we are proud to be members and support the work they are doing.</p>

<h2>The History of 1031 Exchange</h2>

<p>IRC Section 1031 will be 100 years old in 2021, and the intent behind its creation was to encourage active reinvestment within our communities by deferring the payment of tax on gain when the full value is rolled over into other real estate. The benefit to investors in utilizing a 1031 exchange is that the capital gains taxes are deferred, allowing them to use those funds to increase their level of investment. In fact, according to an often-cited study, 88% of properties involved in an exchange are later sold in a taxable transaction (<a href="https://www.1031taxreform.com/ling-petrova/&quot; target="_blank">Ling &amp; Petrova 2015</a>).</p>

<p>As with all good policy, 1031 exchange has withstood the test of time and has continued to evolve with the addition of regulatory measures (e.g. the requirement of a Qualified Intermediary, such as Accruit). The positive effect on our economies are still just as relevant today as they were in 1921.</p>

<p>Used by a variety of investment and business use taxpayers, residential rental property, agriculture and conservation, and many other types of real estate, 1031 exchange transactions represent a broad cross-section of taxpayers. In addition, 1031s promote the growth of small business by providing additional liquidity of investment dollars to purchase properties of an increased value.</p>

<h2>The Economic Impact of 1031 Exchange</h2>

<p>Our CEO, Brent Abrahm, previously wrote about <a href="https://www.accruit.com/blog/1031s-build-america&quot; target="_blank">how 1031s build America</a>. Not much has changed in five years since this was written, and the importance of our industry has never been more apparent than it is right now. The impact of the COVID-19 global pandemic has had a grave impact on Mainstreet America as businesses have had to close operations either temporarily or permanently. The infusion of cash into local economies that comes as a result of 1031 exchange transactions influences not just real estate, but the labor and construction markets as well.</p>

<p>Utilizing 1031 exchange gives taxpayers options to grow and diversify their real estate holdings. It allows them to invest in new housing programs in their communities. 1031 exchange sustains farms and ranches, building businesses that can be passed down for generations. There are a variety of ways that real estate investors use 1031 exchange to grow and diversify their portfolios, and when they do, the communities around them benefit.</p>

<h2>Help Us Preserve 1031 Exchange</h2>

<p>As <a href="https://www.accruit.com/blog/politicians-target-1031-exchanges&quot; target="_blank">1031 exchange is being threatened in Washington</a>, the FEA has put together a piece that explains the economic benefits of 1031 exchange in our local communities. We invite you to <a href="https://www.accruit.com/sites/default/files/FEA%201031%20Sustaining%20A…; target="_blank">read the piece the FEA has created</a>, then ask you to contact your state representatives and ask them to preserve 1031 exchanges.</p>

<p>With three past Presidents of the FEA and five board-level members on our staff, Accruit is committed to ensuring that this industry continues for another 100 years and beyond.</p>
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