 No 1031 Extensions Announced Yet
Extensions to the 45-Day Identification and 180-Day Exchange Period are much needed for our clients and we can appreciate how much stress the strict deadlines are creating. Unfortunately, no extensions have yet been announced. On March 23, the Federation of Exchange Accommodators (FEA), the national trade association for 1031 practitioners, joined members of 21 real estate related associations in sending a
letter to Treasury Secretary Steven Mnuchin and other policy makers at the Treasury Department and IRS, requesting guidance to delay the 1031 deadlines. The letter specifically requests that deadlines should be extended to the later of 120 days or to the last day of the general disaster extension period authorized by an IRS News Release or other guidance, similar to the relief described in section 17 of Rev. Proc. 2018-58 and authorized under Internal Revenue Code Section 7508A.
Relief for our clients is paramount to all of us and 1031 CORP. will issue a special alert as soon as it is announced.
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It's Business as
Usual Here at 1031 CORP.
Your Exchange Team is Ready to Assist You During the COVID-19 Crisis
 We appreciate the trust
you have placed
in 1031 CORP. to handle your
1031 exchange
and want
to assure you, although our team is working remotely, it is business as usual. This is the third week everyone is working remotely and things are working seamlessly. Call
our office to reach any member of our Exchange Team.
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1031 CORP. News: 
Susan Umstead is Retiring
Our dear colleague and friend, Sue Umstead, will be retiring from the day-to-day exchange operations of 1031 CORP. at the end of March after almost 24 years. It's hard to imagine the office without Sue's smile, her quick offer to help or knowing the answer to almost every exchange question off the top of her head but we are very fortunate she is not completely leaving us. While Sue will remain a partner in the Company and involved in projects, employee training and strategic initiatives, she will be working on a limited basis and no longer handling exchange transactions. She will also continue to serve on our Board of Directors. We cannot thank Sue enough for her many years of outstanding service and her tireless commitment to providing an exceptional exchange experience to our clients. We could never have been this successful without her! While we have dreaded this day for almost two years since she announced her retirement, we have worked to prepare and ensure our team is ready - although we could never truly replace Sue. Please feel free to
drop Sue a note
and help us wish her well as she starts working on her bucket list, enjoying extensive travel with her husband and soon welcoming another grandbaby. We will miss you terribly Sue!
A Few Remarks from Sue,
"
I can truly relate to Confucius' saying, "
Choose a job you love, and you will never have to work a day in your life." I have enjoyed what I have done over these many years and am so appreciative of the friends and acquaintances I have made during this time. I could not have come this far without the encouragement, support and true friendship of Margo McDonnell, not to mention the great exchange team family we have. I am not completely shutting the door so you may still see me at the occasional networking event or industry conference.
I may even be in the office from time to time. However, it is time for me to start a new path. I hope to travel, enjoy my hobbies
and especially spoil my grandchildren more than I do now. Thank you, everyone."
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Reverse Exchanges
Open New Opportunities
Preserve Ability to Defer Gain without a Buyer
After a few years' hiatus, reverse exchanges are making a comeback! The current market, with limited inventory and rising prices may compel buyers to identify property they wish to purchase prior to securing a sale on their relinquished property. This allows buyers to secure their optimal replacement property before the sale, and in many cases, listing of their current investment property. The timing advantages have garnered renewed interest in reverse exchanges giving investors a chance to preserve their ability to defer their gain through a 1031 tax-deferred exchange.
What is a Reverse Exchange?
A reverse 1031 exchange is a strategy used when you want to defer the capital gain under Section 1031 but must acquire the replacement property prior to conveying title of your relinquished property to a buyer. The most common situations that necessitate a reverse exchange include:
- You have found the "perfect" property prior to securing a sale on your relinquished property.
- You must settle on the replacement property or lose substantial down monies.
- Contingencies on the sale of the relinquished property have not been removed prior to the closing of the replacement property.
- A buyer for the relinquished property has not been found and the closing on the replacement property cannot be postponed without jeopardizing the transaction.
- Favorable financing commitments will expire without the immediate acquisition of the replacement property.
- You wish to make improvements to the replacement property, which cannot be completed within the 180-Day Exchange Period.
A 1031 exchange is considered to be a continuation of the initial investment and cannot be accomplished if you simply own both properties. It must contain the sale of relinquished property followed by the purchase of replacement property within 180 days.
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Security of your 
Exchange Funds is Our Top Priority
You will never be asked to send money directly
to 1031 CORP.
Any additional funds needed to purchase your
replacement property should be sent directly
to your closing agent. Please always call and verbally confirm the wiring instructions directly with the closing agent before wiring any funds. Call a previously known number not the one listed on a new email.
Protecting You and your Exchange Funds
When sending your signed disbursement authorization,
be sure to upload it to the 1031 CORP. portal using the link provided by your Exchange Officer. Consider calling to alert 1031 CORP. that you are uploading your disbursement authorization.
1031 CORP. will call you at a previously provided telephone number to confirm the instructions for your disbursement. If you are requesting
a wire for an earnest money deposit
or purchase of your replacement property, 1031 CORP. will also contact the wire recipient to verbally confirm the wiring instructions before we initiate the wire.
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Reporting your 2019 Exchange 
A 1031 exchange must be reported for the tax year in which the exchange was initiated through the sale of your first relinquished property regardless of when your replacement property was acquired. You must NOT file your tax return until your exchange is complete.
To assist you and your tax advisor prepare your return, click on our
2019 Exchange Reporting Guide
.
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Impact of County Recording Offices Closing Temporarily
Some parts of the country may see local county recording offices closing temporarily or working with a reduced staff and falling behind on recordings. For taxpayers
 completing 1031 exchanges, the transfer occurs when the burdens and benefits of ownership transfer from one party to another. This generally happens when the terms of the purchase and sale agreement have been met and the loan funds or funds transfer. The recording of a deed by the county recorder memorializes what had already happened.
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Wealth Building 
Webinars
Register Today!
Join us for our complimentary Wealth Building Webinar Series designed to help you build and preserve wealth.
Thursday, April 2, 2020 12 pm Eastern/9 am Pacific
Tuesday, April 14, 2020 12 pm Eastern/9 am Pacific
Thursday, April 16, 2020 12 pm Eastern/9 am Pacific
Tuesday, April 21, 2020 12 pm Eastern/9 am Pacific
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About 1031 CORP.
Serving as a nationwide qualified intermediary for 1031 tax-deferred exchanges since 1991, 1031 CORP. strives to provide a superior exchange experience for our customers and their advisors. We provide our customers with enhanced security of funds, knowledgeable exchange professionals and a commitment to keep the exchange process simple for our customers and their advisors. Our Exchange Team, which includes Certified Exchange Specialists®, has the experience and expertise to facilitate even the most complex exchange transactions, including reverse and improvement exchanges.
Additional information can be found at
www.1031
CORP.com
.
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Margo McDonnell, CRE, CES®
Certified Exchange Specialist®
President and CEO
1.800.828.1031 ext. 212
Mobile: 610.680.6896
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Marissa LoCascio, CES
®
Certified Exchange Specialist®
Senior Vice President &
Director of Operations
1.800.828.1031 ext. 210
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Sue Umstead, CES
®
Certified Exchange Specialist®
Senior Vice President
1.800.828.1031 ext. 208
Mobile: 610.755.8520
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