WHO SHOULD ATTEND?

Income Property Owners and Vacant Land Owners

Stock & Mutual Fund Investors looking to Diversify

Anyone who wants to Acquire Wealth through Real Estate Investing.

BACKGROUND OF TAX FREE EXCHANGES

A tax free exchange is the taking advantage of §1031 of the Internal Revenue Code ("IRC") to defer the payment of income taxes. §1031 provides that "No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment."

Provisions regarding tax free exchanges have been in the IRC since the early twenties, eleven years after the first income tax law was first enacted. The rationale for its existence is that the taxpayer, by obtaining a like kind asset has;    (1) not really changed its position, and;   (2) usually does not have any money with which to pay the income tax that would otherwise be due.

The deferral of tax in a like kind exchange is currently codified in Internal Revenue Code section 1031.

Taxpayers have been utilizing this provision for years without necessarily realizing it.

THE PROVISIONS OF THE §1031 is applicable to almost all property, real or personal, used in a trade or business or held for investment. Among the property excluded is property which is personal in use such as one's residence or inventory items used in a trade or business.

A taxpayer that owns a three family house that is held for investment can exchange that property for an office building. The business that has outgrown its current facility can defer the taxable gain by exchanging it for a new facility.

Today, the use of IRC §1031 is growing in popularity. According to the most recent statistics provided by the Internal Revenue Service, in 1998 more that 100,000 §1031 exchanges were done and year by year the volume has steadily been increasing.

 REAL ESTATE EXCHANGE SERVICES, INC.  Guest Speaker:  Marga Shefman, President

Real Estate Exchange Services, Inc., are specialists in tax-deferred exchanges.  Marga Shefman, President of REES has more than 30 years experience in and around all areas of the Real Estate Industry.   She is a licensed broker in Florida and Texas.  The National Association of Realtors awarded her their most prestigious award for her accomplishments in real estate education.  The Department of Veteran’s Affairs in San Antonio, Texas retained her as an instructor as does the Ed Klopfer Schools (formerly Bert Rogers) in Florida.