Monday, July 16th, 2007
American Stock Exchange to Trade Options on Interactive
American Stock Exchange to Trade Options on Interactive Brokers Group Forbes - Interactive Brokers Group, Inc. options will open with position limits of 5,000,000 shares. The options will trade on the March expiration cycle. The specialist will be Susquehanna Investment Group. Interactive Broker Group, Inc. is an automated Source: www.forbes.comChina's Premier to Tackle Trade SurplusForbes - Premier Wen Jiabao pledged that China would further reform its currency controls and 1031 exchange san diego take steps to resolve problems ranging from the nation's growing trade surplus to its soaring foreign exchange reserves. China's overall economic outlook was Source: www.forbes.comDubai Mercantile Exchange receives additional regulatory approvals AME Info - The Securities and 1031 exchange san diego Commodities Authority of the United Arab Emirates (UAE), The Rahoitustarkastus Finansinpektionen of Finland (in charge of Financial Supervision), The China Securities Regulatory Commission and 1031 exchange san diego the Central Bank of Lebanon have Source: www.ameinfo.com
1031 Timelines
Identification Period: Within 45 days of selling the relinquished property you must identify suitable replacement properties. This 45 day rule is very strict and is not extended should the 45th day fall on a Saturday, Sunday, or legal holiday.Exchange Period: The replacement property must be received by the taxpayer within the "exchange period," which ends within the earlier of . . . 180 days after the date on which the taxpayer transfers the property relinquished, or . . . the due date for the taxpayer tax return for the taxable year in which the transfer of the relinquished property occurs. This 180-day rule is very strict and is not extended if the 180th day should happen to fall on a Saturday, Sunday or legal holiday.
If you are considering a 1031 exchange please visit http://www.1031-nnn-properties.com/ for more in depth information on 1031 exchanges or to speak with an investment specialist about acquiring triple-net properties.
What kind of property can I use in a 1031 exchange?
The IRS has strict regulations regarding the property that you can use in a 1031 exchange. Over all of the details, however, is the general rule that you must exchange like-kind properties (e.g. real property for real property). You can exchange one property for several properties (or vice-versa), but they must be like-kind properties.
1031 exchanges are designed for investment or income-producing properties. In other words, you can exchange apartment and office buildings as well as farmland. In addition, you can exchange more abstract properties such as oil and gas interests, livestock, and leasehold interests. You can also exchange personal property.
On the other hand, you cannot exchange your personal residence because it is neither an investment nor income-producing property. You also cannot exchange inventory, stocks, bonds, notes, or securities. Finally, you cannot purchase a replacement property and then immediately sell it; wait at least a year before selling that acquisition.
How to Initiate an Exchange
To initiate an exchange, the investor must decide that exchange must be made prior to closing of the relinquished property. The exchange agreement must be in place and delivered to all parties before the relinquished property transfer of title. There are several steps on how to initiate an exchange.
STEP ONE
First, you must find an experienced professional Qualified Intermediary to assist you with the exchange as early in the sale process as possible. In finding a Qualified Intermediary, you should consider that he/she is knowledgeable and experienced staff; the local assistance for your real estate agent, CPA and attorney; and especially the safety of your funds. You also require the Qualified Intermediary to provide fidelity bond insurance coverage.
STEP TWO
Instruct your real estate agent to include an Exchange Cooperation Clause as a supplement to the purchase and sale agreement on the relinquished property. An example of Exchange Cooperation Clause is when the buyer hereby acknowledges that it is the intent of the Seller to affect an IRC 1031 tax deferred exchange which will not delay the closing or cause additional expense to the buyer. The seller?s rights under this agreement may be assigned to Investment Property Exchange Services, Inc., a Qualified Intermediary, for the purpose of completing such an exchange. Buyer agrees to cooperate with the seller and Investment Property Exchange Services, Inc. in a manner necessary to complete the exchange.
STEP THREE
Contact your Qualified Intermediary as soon as possible after escrow is opened or after entering into the purchase and sale agreement and advise them of your intent to do an exchange well in advance of the closing date. The Qualified Intermediary will draft the appropriate Exchange Agreement, Assignments and Exchange Closing Instructions that must be executed prior to closing on the property being sold.
STEP FOUR
You must start searching for acceptable replacement property immediately to insure that you can meet the strict time frame for the 45-day identification period.
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