BLOG
<p>Accruit joins Faegre Baker Daniels, the Colorado Energy Coalition and the Colorado Clean Industries Association at the first Energy Connections event of 2018.</p>
<p><em>Blockchain technology has the potential to accelerate the transition to a clean energy future and redesign the rules of the game on how energy is distributed and transacted. Globally, Australian, Japanese, and European energy providers are already starting to develop blockchain-based energy projects.</em></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">Accruit, LLC, a financial technology company specializing in escrow and 1031 exchange services,</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif"> is pleased to announce the addition of Jordan Born as</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif"> Associate General Counsel</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">.</span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">Jordan has worked primarily in real estate law since obtaining his LL.M. in 2006. In 2011, he started his own practice where he advised and represented individuals, business entities, lenders, borrowers, landlords and tenants in all matters related to commercial and residential real estate. He is an active member of the Illinois State Bar Association and the Chicago Bar Association.</span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">“Jordan’s extensive knowledge in exchanges and escrow will be a boon to Accruit as we grow our base in these areas and expand into new financial technology arenas</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">,</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">" said CEO, Brent Abrahm. “We’re very excited to have him on board.”</span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">Jordan brings a wealth of practical experience in both like-kind exchanges and escrow. At Accruit, he will continue this work alongside Accruit EVP and General Counsel, Martin Edwards. When asked about his new role at Accruit, he said, "I am very pleased to join the Accruit team and work with our clients to ensure their satisfaction and devise durable solutions."</span></span></p>
<p>Tax deferral afforded through Section 1031 like-kind exchanges has been under threat of repeal or being reduction for many years. A committee made up members from the Senate Finance Committee and the House Way and Means Committee known as The Joint Committee on Taxation have made such recommendations many time over the past few decades. Cutbacks to Section 1031 had been recommended as far back as President Clinton’s administration. In 1997, that administration suggested requiring exchanges to be limited to “same-kind” properties rather than like-kind (any kind of real estate is like-kind to any other type of real estate). It came as no surprise that the recent House and Senate proposals for tax reform chose to whittle down Section 1031 in order to raise tax revenues to offset some of the tax reductions contained in the reform plans.</p>
<h2>The House Proposal</h2>
<p>The House proposal came out first and provided:</p>
<blockquote>
<p style="margin-bottom:.0001pt">“Under the provision, the special rule allowing deferral of gain on like-kind exchanges would be modified to allow for like-kind exchanges only with respect to real property. The provision would be effective for transfers after 2017.”</p>
</blockquote>
<p>What this means is that personal property exchanges such as those for machinery, equipment, vehicles, trucks, trailers, rail cars and aircraft would no longer be the subject of exchanges. Also, certain intangible property such as auto and other dealership rights and franchise rights were disallowed. Lastly, art and collectible exchanges were no longer allowed in this shift that amounted to allowing only real estate exchanges.</p>
<p>The House proposal made a note that:</p>
<blockquote>
<p style="margin-bottom:.0001pt">“The bill provides full expensing for most tangible personal property which provides a marginal effective tax rate of zero percent to fully expensed property, equating to the deferral that like-kind exchanges provide currently”.</p>
</blockquote>
<p style="margin-bottom:.0001pt">In aggregate, non-real estate exchanges currently represent a larger annual dollar volume than real estate exchanges. While arguments can be made that 100% expensing does not have as a significant benefit that tax deferral does under Section 1031, it certainly softens the blow to personal property. It does not help the other non-real estate asset classes that don’t constitute personal property.</p>
<h2 style="margin-bottom: 0.0001pt;">The Senate Proposal</h2>
<p>The Senate proposal was very similar and, after a summary of the current status of the various assets that can be the subject of exchanges, it concluded “This provision modifies the current law non-recognition of gains from like-kind exchanges by limiting its application to real property that is not held primarily for sale”.</p>
<p>Both the House and Senate proposals referenced a finding by the Joint Committee on Taxation that this change to Section 1031 is expected to save $30.5 billion over a ten-year period. It is worth noting that Ernst and Young prepared a study in 2015 in anticipation of the possible repeal of Section 1031 and came up with a somewhat opposite conclusion, due to the fact that repeal would make the turnover of assets less attractive. The study found “Repealing like-kind exchange rules would subject businesses that rely on these rules to a higher tax burden on their transactions, resulting in longer holding periods, greater reliance on debt financing, and less-productive deployment of capital in the economy.”</p>
<h2>The Final Bill: Tax Cuts and Jobs Act</h2>
<p class="MsoFooter">The final bill was signed into law on December 22, 2017. As expected, exchanges of real estate interests have been preserved while personal property assets are no longer exchangeable after January 1, 2018. The requirement for <a href="/blog/all-tax-deferred-exchange-companies-are-not-created-equal">the use of a qualified intermediary</a> (<a href="https://www.youtube.com/watch?v=Pi4l_dQgoh8" target="_blank">Video: Who can and cannot act as a qualified intermediary in a 1031 exchange?</a>) has been retained under the tax reform bill.</p>
<p class="MsoFooter"><span style="text-decoration:none"><span style="text-underline:none">Further, as also expected, for any non-real estate exchanges begun prior to January 1, 2018, those may be still be completed in 2018. Real estate exchanges are as popular as they have ever been, and under Tax Reform they remain fully intact.</span></span></p>
<p>Accruit, LLC, a financial technology company specializing in escrow and 1031 exchange services, has acquired PaySAFE Escrow, including its <a href="http://www.PaySAFEescrow.com" target="_blank">PaySAFE® web-based transactional technology</a> that allows buyers and sellers to safely complete online purchases. PaySAFE’s settlement service partners with auction houses, online marketplaces and classified websites to ensure that customer transactions are securely settled.</p>
<p>According to Accruit President and COO Karen Kemerling, the acquisition of PaySAFE’s technology aligns with Accruit’s goal of expanding its financial technology services. “The evolution of our FinTech product strategy parallels the demand from customers for online services. PaySAFE’s diverse digital partnerships and online services enable us to meet this demand.”</p>
<p>Matthew Medlock, PaySAFE Escrow’s former president and founder, joins Accruit as a vice president of business development and will work closely with Accruit CEO, Brent Abrahm, to lead the growth of the online escrow platform.</p>
<p>“The acquisition by Accruit supports PaySAFE’s goals to expand reach and deepen the functionality of the platform,” said Medlock. “Accruit has outlined further development which includes evolving the PaySAFE® user interface, developing mobile applications and enhancing API functionality for integration with additional online marketplaces.”</p>
<p><a href="https://paysafeescrow.com/" target="_blank">Learn more about PaySAFE<sup>®</sup>.</a></p>
<p>Accruit, LLC, a financial technology company specializing in escrow and 1031 exchange services, today announced that they have signed an agreement to acquire the assets of PaySAFE Escrow, Inc. including its PaySAFE® web-based escrow technology (www.PaySAFEescrow.com) that allows buyers and sellers the ability to complete online purchases with financial protection and proper documentation.</p>
<p>The acquisition of PaySAFE Escrow, Inc.’s assets, aligns with Accruit’s goal of expanding its financial technology services. Accruit will invest heavily in the marketing and further development of the PaySAFE® online escrow and auction settlement services pioneered by PaySAFE Escrow, Inc. </p>
<p>“The increasing frequency of online transactions worldwide opens a significant opportunity for Accruit to meet this growing need and continue to serve our existing customers as a trusted intermediary,” said Accruit CEO Brent Abrahm. “PaySAFE Escrow, Inc.’s PaySAFE® online escrow platform is positioned as a leader in safe and secure settlement services by partnering with some of the largest marketplaces across many industries.“<br />
<br />
PaySAFE Escrow, Inc. currently serves online auctions, insurance settlements, asset acquisitions and collectibles markets. Accruit intends to continue the evolution of the current user interface, develop mobile applications and enhance the API functionality for integration with additional online marketplaces. Matthew Medlock, PaySAFE Escrow, Inc.’s president and founder, will join Accruit as a vice president of business development and lead the growth of the online escrow platform and API integration efforts. </p>
<h4>About Accruit</h4>
<p>Accruit, LLC is a financial technology company specializing in escrow and 1031 like-kind exchange services. Accruit facilitates all types of commercial and individual transactions by serving as a trusted independent escrow agent and qualified intermediary. Learn more at <a href="https://www.accruit.com">www.accruit.com</a>.</p>
<h4>About PaySAFE Escrow, Inc.</h4>
<p>PaySAFE Escrow, Inc. is a wholly owned subsidiary of Ho-Chunk, Inc., the economic development corporation owned by the Winnebago Tribe of Nebraska. PaySAFE Escrow, Inc. is a preferred transaction settlement service that partners with auction houses, online auctions and classified websites to ensure that their customers are financially protected. PaySAFE Escrow, Inc. utilizes its PaySAFE® online escrow technology to level the transactional playing field for online buyers and sellers. Learn more at <a href="http://www.PaySAFEescrow.com" target="_blank">www.PaySAFEescrow.com</a>.</p>
<p> </p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">Accruit, </span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">a financial technology company specializing in escrow and 1031 exchange services</span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">, today announced </span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">the addition of Jeff Hathcote as director of information technology.</span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">Hathcote brings more than 25 years </span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">of experience in a broad range of specialties including security, networking, vendor management, project management and software development. Hathcote is a Certified Information Security Manager and a Microsoft Certified Systems Engineer. </span></span></p>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">“We</span></span><span style="font-size:10.5pt"><span style="background:white"><span style="font-family:"Helvetica",sans-serif"><span style="color:#333333"> are excited to have someone with Jeff’s technical background and leadership experience joining the Accruit team. His passion for security will ensure our clients continue to experience safe and secure FinTech services</span></span></span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">," said Accruit President and COO, Karen Kemerling.</span></span></p>
<p><span style="background:white"><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">In his new role, Hathcote will manage Accruit’s IT operations and software development efforts and help implement the company’s FinTech product strategy. </span></span><span style="font-size:11.0pt"><span style="font-family:"Calibri",sans-serif">“I’m excited to be joining Accruit as the company evolves its technology service offerings and furthers its investment in developing additional technology solutions,” he said. </span></span></span></p>