<p>Marty Edwards was an invited speaker at a daylong seminar May 7, 2014 on 1031 like-kind exchanges of real estate in Naperville, Illinois sponsored by Lorman Education Services, a national leader in continuing education programs. Marty spoke on the subjects of Exchange Structures &amp; Formats and Identifying Common Problems in Exchanging &amp; How to Avoid Them.<br />
<br />
Take a look at Marty’s attached presentations.</p>

<h4>What was bonus depreciation?</h4>

<p>Generally speaking, bonus depreciation allowed for the immediate expensing of a percentage of the acquisition cost of new equipment</p>

<ul>
<li>For 2008 through the latter portion of 2010, this amount was limited to 50%.</li>
<li>Beginning in late 2010 and through 2011, the amount increased to 100%.</li>
<li>For 2012 and through 2013, the amount was reduced to 50%.</li>
<li>As of December 31, 2013, bonus depreciation has expired and is no longer available for purchasers of qualifying equipment.</li>
</ul>

<h4>What the expiration of bonus depreciation means to you:</h4>

<p>If you have taken advantage of bonus depreciation and are now planning to sell assets, you could be facing a very large tax bill. Why? Because bonus depreciation immediately drives down the tax basis of those assets. While bonus depreciation has provided equipment owners with immediate, additional depreciation expense to drive down taxable income, it has come at a future and potentially unanticipated cost. When those assets are eventually sold, that low (or zero) tax basis can translate into <strong>significantly</strong> larger taxable gains.</p>

<h4>The solution, 1031 Like-Kind Exchanges:</h4>

<p>There's a simple tax strategy that's already in place, Section 1031 Like-Kind Exchanges (LKEs). If you are selling and potentially replacing your equipment, it's time to revisit this time tested and proven approach. An LKE allows asset owners to defer current taxable gains when assets are sold and then followed by a purchase of "like-kind" assets. It's a powerful way to increase cash flow and keep your money right where it belongs, growing your business. Let's look at an example and pay particularly close attention to the "cash available for replacement equipment" - that's a 67% increase in cash immediately available for the investment in replacement assets!</p>

<p><img alt="1031 like-kind exchange savings" src="/sites/default/files/files/LKE-Comparison_0.jpg" style="height:318px; width:655px" /></p>

<h4>Do not delay:</h4>

<p>If you are planning on selling and purchasing replacement equipment, it's critical to begin the planning process right away. The LKE rules require that the right LKE documents be in place prior to selling (or buying) anything you wish to award Section 1031 treatment to. Do not get caught in the bonus depreciation trap, call Accruit today.</p>

<h4>New Leadership Brings Strategic Planning to Nation's Leading Qualified Intermediary</h4>

<p>Accruit, LLC, the nation’s leading provider of qualified intermediary (QI) services and 1031 Like-Kind Exchange (LKE) program solutions, is pleased to announce the addition of Karen Kemerling to the Accruit family as Chief Operating Officer.</p>

<p>Kemerling comes from the Association of PeriOperative Registered Nurses (AORN) where she filled the role of Vice President and Chief Information Officer. Her duties included oversight and management of Customer Service, Software Development, IT Infrastructure, the AORN Journal, and over-all organizational strategies for the non-profit association. Prior to AORN her experience included both large and small public companies spanning a wide range of industries including Technology, Medical Devices, Bioscience, and Aviation.</p>

<p>She holds a Doctorate degree in Management and Organizational Development, a Masters of Science in Information Systems, and Bachelor of Science in Computer Information Systems with a Minor in Electronics.</p>

<p>As COO for Accruit, Kemerling will be responsible for managing the operational aspects of the company (IT, Finance/Treasury, Client Services, and Marketing) and assisting the CEO in aggressive growth strategies for the organization. "Karen's organizational leadership and development&nbsp;experience makes her an invaluable asset for Accruit. We're excited to have her onboard; we know that she'll play an integral role in taking Accruit, our 1031 exchange services, and our various business lines to a new level," said President and CEO of Accruit, Brent Abrahm.</p>

<p>When Karen was asked about her new position she responded, "It's a natural fit for me – my history with previous organizations has given me extensive working experience within the&nbsp;core operational components of a company. I’m passionate about developing and leading high-performance teams that successfully accomplish company, revenue and operational objectives."</p>

<h4>About Accruit</h4>

<p>Denver, Colorado-based Accruit, LLC is the nation’s leading provider of qualified intermediary and 1031 Like-Kind Exchange program solutions, serving more than 20 industries. The company’s long record of success includes individuals to public Fortune 500s, and has resulted in billions of dollars in deferred tax liability for its clients. Accruit, LLC and PricewaterhouseCoopers (PwC) formed a joint business relationship in 2010 to provide clients the absolute highest level of expertise in 1031 LKE program management. In 2011, Accruit acquired North Star Deferred Exchange Corp, a national provider of QI and Exchange Accommodation Titleholder (EAT) services, in order to provide the exchange industry with one of the broadest service offerings available. For more detailed company information, please visit our website and follow Accruit on <a href="https://www.linkedin.com/company/45956/&quot; target="_blank">LinkedIn</a> and <a href="https://twitter.com/Accruit&quot; target="_blank">Twitter</a>.</p>

<p>1031 Like-Kind Exchanges are a valuable asset for businesses’ growth and success. However, many companies seeking tax relief don’t know that there are no licensing requirements for <a href="https://www.accruit.com/about-us/how-choose-qualified-intermediary">Qua… Intermediaries</a>. The only stipulation set forth states that a QI cannot be related to or have a financial relationship with the taxpayer.</p>

<p>In 2008, a 1031 Exchange and Qualified Intermediary service provider filed for bankruptcy, which froze customers’ exchange funds in illiquid securities. Customers were forced to seek their funds in bankruptcy court where many ended up missing their specified exchange period and facing tax liabilities due to the failed exchange.</p>

<p>As the nations leading QI for LKEs involving business assets, Accruit handles over 30,000 transactions a month totaling over $7 Billion annually. We deliver the highest level of integrity and competence to assure compliance with all regulations and to safeguard the security of funds awaiting reinvestment. <a href="/contact-us" target="_blank">Contact Accruit today</a> to reinvest unnecessary taxes back into your company.</p>

<p>Read our full list of 1031 Exchange tips for <a href="/blog/1031-exchange-tips-selecting-right-qi" target="_blank">selecting the right Qualified Intermediary</a>.</p>

<p>As 2013 draws to an end, Accruit took a look back and realized that it’s truly been a great year. Between the state of the economy, business and our friends and family, we have a lot to be thankful for.</p>

<p>Here’s a quick list of &nbsp;some of the things we’re thankful for, just in time for Thanksgiving:</p>
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<h4>&nbsp;1.&nbsp;&nbsp;&nbsp; The trucking industry forges on</h4>

<p>Accruit’s Steve Doherty attended the 2013 American Trucking Association national conference held this past October in Orlando Florida. Despite being hit hard by several problematic external factors, we’re happy to report that several aspects of the industry are improving, including: alternative fuel-driven power unit designs, solid growth in the nation’s homebuilding, safety and vehicle accident statistics, and dialogue with the nation’s shippers around wait time problems and expenses.</p>

<p>Although lasting impacts of the economic decline in recent years will continue to affect trucking for the next several years, the general trend is an inspiring start to recovery for a vital national industry. Read the full blog post here.</p>

<h4>&nbsp;2.&nbsp;&nbsp;&nbsp; Paying down lines of credit</h4>

<p>As a Qualified Intermediary, we’re thankful (but not surprised) that the Chief Council Advice recently ruled that paying down lines of credit is not in breach of 1031 Like-Kind Exchange requirements.</p>

<p>Tax advisors had conducted business under this assumption for years, but companies who felt trepidation with how liability netting was structured under Like-Kind Exchange programs can now be thankful for the definite ruling. You can <a href="/sites/default/files/ELFA-Article-ILM-201325011-v4-8-22-2013-2.pdf" target="_blank">download the full article</a> by Jeff Nelson from PwC here.</p>

<h4>&nbsp;3.&nbsp;&nbsp;&nbsp; The Federation of Exchange Accommodators (FEA)</h4>

<p>On a more personal level, Accruit is thankful for the appointment of our own Steve Chacon as the Treasurer of the Federation of Exchange Accommodators (FEA). With a heavy presence in the FEA, Accruit is tied closely with the official voice of the 1031 industry and is thankful for the plans and developments within the federation. <a href="/blog/2013-fea-annual-conference" target="_blank">Get a recap of the 2013 FEA Annual Conference and Accruit’s involvement here</a>.</p>

<h4>&nbsp;4.&nbsp;&nbsp;&nbsp; The expiration of bonus depreciation</h4>

<p>Accruit is grateful to be in a position to help our customers brace for impact of bonus depreciation expiration. The companies that opted to postpone implementing a 1031 LKE program in exchange for bonus depreciation need to prepare for 2014 so they’re not hit with a big tax bill. We’re thankful that we’re able provide continued tax relief for companies in a wide variety of industries.</p>

<p><strong>Happy Thanksgiving from Accruit</strong></p>

<p>Lastly, we’re thankful for our friends, family and all our customers, business partners and loyal followers. We couldn’t do any of the work we do without your continued support and we hope you all have a wonderful holiday season.</p>

<h4>Chairman Camp’s Decision Better for Tax Reform in the Long Run</h4>

<p>House Ways and Means Chairman Dave Camp recently delayed moving forward with the most substantial tax code rewrite since 1986.</p>

<p>Thursday’s meeting with House Speaker John A. Boehner, Majority Leader Eric Cantor and Majority Whip Kevin McCarthy to discuss the legislative overhaul resulted as many predicted: the committee decided to table their plans for the time being.</p>
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<p>Many attribute the postponement to a spiteful GOP reveling in the Affordable Care Act fiasco. However, Camp’s decision not to move forward with the bill is seen by many as the right move given the current status of the economy.</p>

<p>There are myriad issues facing the legislative overhaul, including the short congressional calendar and the ongoing negotiations in a House-Senate budget conference committee. Comprehensive tax reform is critical to support a strong long-term economy but pushing a bill too quickly will cause immeasurable damage to a fragile recovery. While the tax reform will address corporate and individual tax provisions, a hastily created bill will fall short of the full reform needed and will snuff out the chance to do so correctly.</p>