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Summary of Tax-Deferral Strategies Before you choose a tax deferral strategy, consider all your options. There are a number of tax-deferral and tax-exclusion strategies available. This concise overview of tax strategies helps you select strategies that are right for you. Learn More Role of the Qualified Intermediary The right Qualified Intermediary (QI) can make the difference between a successful 1031 exchange transaction and a mistake. Qualified Intermediaries are not licensed, regulated, audited, nor are they required to be bonded or insured. Here's what to look for when choosing a QI. Learn More Permissible Closing/Settlement Costs You can create a tax liability by improperly using 1031 exchange proceeds. While they can be used to pay for certain routine settlement and closing costs related to the disposition of the relinquished property and/or the acquisition of the like-kind replacement property, use of funds to pay other expenses, such as financing and settlement costs may create an tax liability. Learn More Reverse 1031 Exchanges More Popular The real estate market is changing, and relinquished properties are not selling as quickly as in the recent past. You may find it necessary to buy a replacement property before selling the relinquished property. How do you structure a reverse 1031 exchange? Learn More California's Withholding Law is Changing California's current income tax withholding law requires a mandatory withholding of 3 1/3% based on the gross sales price on the sale of real property. The problem with the law is that the calculation is based on the gross sales price and bears absolutely no relationship to the taxpayer's actual capital gain income tax liability. It actually causes over-withholding for many taxpayers. New legislation was signed into law that will provide an alternative withholding method. Learn More Vacation Homes: Do They Really Qualify? Thinking of exchanging a vacation property or second home for an investment property? You may qualify, but first read what the experts have to say. Learn More Next Month: Year-End Planning The next issue of 1031 Exeter eNewsletter™ will cover year-end planning and 1031 exchanges, including failed or partial 1031 exchanges, 1031 exchange period when crossing over year-end, plus the history of section 1031, choosing a SAFE Qualified Intermediary, and Seller Carryback Note issues.
If this edition of 1031 Exeter™ has been forwarded to you, please visit www.exeterco.com to activate your own subscription. This 1031 Exeter eNewsletter™ was sent to you as a service of Exeter 1031 Exchange Services, LLC. Your e-mail address was received through one or more of the following sources: you opted in through our Web site www.exeterco.com or your clicked on a link from an e-mail we sent you; you had a pre-existing relationship with Exeter 1031 Exchange Services, LLC, or you opted in at a trade show at which we were represented. If you do not wish to continue this service, unsubscribe here or reply to this e-mail. Exeter 1031 Exchange Services, LLC National Corporate Headquarters 402 West Broadway, Suite 400 San Diego, CA 92101 (619) 615-4210 (866) 393-8377 © Copyright 2006 by Exeter 1031 Exchange Services, LLC. All rights reserved. Reprint by written permission only. | |||||