Steve Chacon's (mega1031) Blog

The IRS has issued an extension Notice for DeKalb, Grundy, Kane, Lake, LaSalle and Will counties for the August 20th storms.   [Note that the IRS may add additional counties later as FEMA adds counties.  If you are near the affected area, you should check the disaster announcement website for up...

An extension Notice for Grand Forks County, North Dakota has been issued by the Internal Revenue Service (Service). Related to the August 26th storms, this particular extension is related to Grand Forks County only. The Service may include other counties, depending on reports by the Federal Emerg...

Every so often sellers are approached with the request they carryback an installment note to finance the purchase. Not a bad idea from a “big picture” perspective as seller financing has been effective in environments where credit is a concern and interest rates are rising.  Positive results of ...

I just spoke to a client about Leasehold Improvement Exchanges (LSH), also known as Advanced Build to Suit Exchanges.  They are a very powerful tool for the taxpayer that already owns the property to be improved.  The downside is there's an element of risk involved that cannot be eliminated.  Th...

The U.S. Tax Court just issued a ruling regarding like-kind exchanges and "vacation" homes.  In a Tax Court memo issued Wednesday (May 30, 2007); a Georgia couple had their vacation / second home exchanges overturned.  If you have a client that is considering a §1031 Exchange, be sure to recommen...

I was just thinking about a St. Paul, Minnesota Qualified Intermediary (QI) that commingled it's exchange funds, then filed for bankruptcy.  It turns out that the QI was day-trading with the client's funds. During the bankruptcy proceedings the court appointed trustee treated the pooled exchange...

Another thought regarding the 1031 exchange process; make sure to involve your CPA or tax advisor from the beginning.  Your current advisor will not only provide the information the qualified intermediary will need for a successful exchange, they will be able to tell if the intermediary is truly ...

A word to the wise; always do your due diligence before beginning your §1031 Exchange.  There are a Federal Investigations underway on a number of very large qualified intermediaries (QI).  The dollar amounts are staggering and in one case, nearly One Hundred Million Dollars.  The problem is alwa...

I just had a conversation with a client that purchased a replacement property before the passing of the 45 day identification deadline. It is very important to remember that the purchased property is also a properly identified replacement property; and is factored in the application of both the 2...

As an intermediary, one of our greatest responsibilities is to make sure that our client’s funds are segregated, instead of pooled, secure and earning interest at our bank’s standard rates. This unique philosophy sets us apart from the majority of our competitors, who often pay little or no inter...