Adams County Real Estate Office Building Tax-
Deferred Exchange |
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History of the 1031
Exchange Program.
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Exchanges are not new!
Actually the concept began in 1921, only 3 years after the first income tax laws
were enacted. |
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From its inception up
until the 1970's, the 1031 Exchange was not common. All Simultaneous Exchanges were
executed and performed mainly by large corporations and the wealthy. Until the
"The Starker Case", which is synonymous with Delayed Exchanges. The
Starker family survived a series of court cases which ultimately led to the validation of
Non-Simultaneous Exchanges or the "DELAYED EXCHANGE". |
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The Tax Reform Act of
1984 established the "exchange" time periods at 45 days to identify the
replacement property and 180 days to acquire the new replacement property. The
commencement date for these time periods is the actual closing date of the sale of the
relinquished property. |
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The Tax Reform Act of
1986 catapulted the 1031 Exchange into its current wave of popularity.
Unfortunately, the reason for its popularity was that this Tax Reform Act took away the
special tax treatment available to investors when they experienced long-term capital
gain. With the special treatment gone, investors sought out the 1031 Exchange as a
means to defer paying full taxes. |
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The 1991 amendment to
IRC Section 1031 resolved many of the "questions" that surrounded exchanges.
The inclusion of the 1991 Regulations to the tax code presented a detailed method
for effecting a tax-deferred exchange. With the use of this codified method, a
taxpayer can be confident in receiving the desired tax deferment treatment. |
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The most recent change
to the tax code is reflected in the "Taxpayer Relief Act of 1997". There
was an attempt to make some substantial changes to tax deferred exchanges, but these were
all stricken before the act became final. |
FOR ALL OF
THE INFORMATION YOU WILL NEED, PLEASE CONTACT:
Dick Palmer
Pathfinder
Investment Corporation
2953 S. Peoria St.
Suite 101
Aurora, Co 80014
DIRECT TELEPHONE: 303-759-8500
E-MAIL: sales@landoffice.com
FAX: 303-759-8400 |
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Property Investments, 1031 Exchanges, Land
Development Services for YOU!
This material is designed only to
provide information concerning I.R.C. Section 1031 Tax-Deferred Exchanges. It is not
intended to provide or replace legal, accounting or other professional counsel.
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