February 2021
President's Message
LR 202053007 (12/31/2020) Series of Related Party Exchanges does not Violate Section 1031(f)
GAC Update – February 2021
45 Day and 180 Day Postponements for Disaster Areas in Texas, Oklahoma, and Louisiana
A Look at How the CES® Designation Came About
Like-Kind Exchanges Celebrate 100 Years in Tax Code
Welcome New Members
Sorry Folks. The Battery Fairy Isn’t Coming.
Affiliate Spotlight
Affiliates First!
From the FEA Executive Director's Desk
Did You Know?
FEA Annual Conference Programming Announced
MCLE Credit from California Received for the 2020 FEA Virtual Conference
New Threats to Section 1031 Like-Kind Exchanges
President's Message -

Julie Baird, Esq.,
First American Exchange Company, Denver, CO
It’s late February and as I write this message two-thirds of the country experienced a polar vortex and battled freezing temperatures along with power outages in recent weeks. Our thoughts are with our member companies and affiliates suffering in these conditions.
 
Your FEA Board has had a busy start to the year finding ways to bring value to our members! At our January Board meeting we discussed the need for more educational opportunities for our members.
LR 202053007 
(12/31/2020) Series of Related Party Exchanges does not Violate Section 1031(f)
By Mary Foster, Esq., CES®

This private letter ruling involves a series of exchanges by 5 related entities. It is similar to prior rulings issued by the IRS with the same analysis. In this ruling: (1) Taxpayer transferred its Relinquished Property to an unrelated person, and then acquired its Replacement Property from Related Party 1 and Related Party 2; (2) Related Party 1 acquired replacement properties from unrelated persons; (3) Related Party 2 acquired its Replacement Property from Related Party 3; (4) Related Party 3 acquired its Replacement Property from Related Party 4; and (5) lastly, Related Party 4 acquired its replacement property from unrelated persons.
GAC Update - February 2021
Work is underway in Congress on a budget reconciliation measure to implement President Biden’s American Rescue Plan. The legislation contains $1.9 trillion in COVID relief measures but is not expected to include tax items. Work on the reconciliation bill, which only requires a simple majority for passage, is expected to be completed by mid-March, when expanded unemployment benefits are set to expire.
45 Day and 180 Day Postponements for Disaster Areas in Texas, Oklahoma, and Louisiana
Texas: The IRS has issued postponements of the 45-day and 180-day deadlines for the entire State of Texas for the winter storm that began February 11, 2021.

Oklahoma: The IRS has issued postponements of the 45-day and 180-day deadlines for the entire State Oklahoma for the winter storm that began February 8, 2021.
A Look at How the CES® Designation Came About
In 1998, Margo Mucha McDonnell was chair of the FEA Continuing Education Committee and polled the volunteer committee members to determine the committee's goal for the upcoming year. Jim Casterline, a long time FEA Director and incoming President, recommended the FEA develop a certification program. Over the next few years, many committees assisted in polling the FEA general membership to determine whether members wanted to develop such a program. In 1999, Brad Penner became co-chair and helped create our Mission Statement. At the FEA Annual Conference and General Meeting in October 2000, the FEA membership overwhelming voted to proceed with a voluntary certification program. In 2001, the term Certified Exchange Specialist® (CES®) was chosen as the designation members wanted to use to convey their competence to taxpayers and their professional advisors.
CES 1031
Like-Kind Exchanges Celebrate 100 Years in Tax Code
Century-Old Provision Will Be Vital in Reimagining Real Estate After Pandemic
2021 marks the 100th year anniversary of like-kind exchanges in the Internal Revenue Code, according to the Federation of Exchange Accommodators, the industry association for the Qualified Intermediaries (QIs), or professionals who facilitate like-kind exchanges of real estate.
Welcome New Members
1031 Exchange Services, LLC
Little Rock, AR (Regular Member)

Mercer 1031 Consulting, LLC
Boston, MA (Affiliate)
Sorry Folks. The Battery Fairy Isn’t Coming.
Educational Article Provided by FEA Affiliate Member: Peregrine 1031 Energy Partners. NOTE: These are the views of the author and not necessarily those of the FEA.

In 2019, the state of Minnesota consumed 72 million megawatt-hours of electricity. This means the amount of battery storage expected to be in existence for the entire world would be the equivalent of just one percent of Minnesota’s annual energy consumption.
 
Current cost estimates for battery storage are about $250 per kilowatt-hour, which equates to a cost of $250,000 per megawatt-hour. This means the cost of all the expected battery storage in the world (741,000 MWh by 2030) would cost $185 billion to build.
 
Add in the fact that battery storage only lasts for 10 years, according to the National Renewable Energy Laboratory.
Affiliate Spotlight
Nano Banc
(858) 880-5900 (Bobby) /
(844) 626-0262 Ext 712 (Michael)
1031 Investment Services LLC
2 Orr Hatch Drive
Cornwall, NY 12518
(845) 534-6818 Phone
Affiliates First!
FEA thanks our Affiliate Members for their support of our FEA members and the 1031 exchange industry. In return, FEA members are encouraged to support our Affiliate Members.
1031 Investment Services LLC
(845) 534-6818

Axos Bank
(858) 732-1381

BankUnited
(914) 305-9428

Budget Mortgage Corp.
(410) 458-5747

Capital One
(631) 304-3061

Capital Square 1031
(804) 290-7900 Ext 132

Clark Wealth Strategies, Inc.
(402) 504-3531

Colorado Financial Service Corporation
(303) 962-7267

Customers Bank, CB Private & Commercial BKNG-NY
(212) 843-2488

Effective 1031 Planning
(888) 251-3004

Enterprise Bank & Trust
(760) 550-2030

ExchangeRight Real Estate, LLC
(855) 317-4448

First Foundation Bank
(949) 468-8559

Four Spring Capital Trust
(732) 749-7339

Independent Financial
(469) 301-2791

Inland Real Estate Group
(630) 218-4953

Kay Properties & Investments, LLC
(310) 404-7297

Lockton Insurance Brokers, LLC
(415) 568-4106

Luther Burbank Savings
(858) 436-1830
Meltzer, Lippe, Goldstein & Breitstone, LLP
(516) 747-0300

Mercer 1031 Consulting, LLC
(866) 773-1031

Millwork Commercial
(801) 899-1943

Montego Minerals
(940) 395-4750

MNM Partners, LLC
(408) 221-3077

MUFG Union Bank, N.A.
(312) 601-3956

Nano Banc
(858) 880-5900

NexTrend Securities Inc.
(972) 661-1283

Northern Bank and Trust
(781) 569-1852

Passco Companies, LLC
(949) 263-7904

Peregrine 1031 Energy Partners
(214) 483-1997

Realized Holdings LLC
(512) 827-3651

Robbins May & Rich, LLP
(910) 692-4900

Signature Bank
(646) 822-1946

Stan Johnson Company
(646) 778-5560

Syndicated Equities
(312) 640-9028

Tangible Wealth Solutions
(720) 996-1794

TriState Capital Bank
(412) 304-0464

Umpqua Bank
(818) 254-3492
From the FEA Executive Director's Desk
Ways FEA Members Can Celebrate Like-Kind Exchanges Tax Code 100th Anniversary
 
  1. Utilize the press releases produced by FEA – include them in your company’s newsletter, post them on the website and distribute them to your customers.
  2. Link to FEA’s social media pages where and retweet, repost and repeat!
  3. Include the FEA logo with the 100th anniversary banner on your website and in your Email signature line.
  4. Educate your staff, your clients and your congressional delegation about this history of the 1031 exchange.
  5. Make plans to celebrate the 100th anniversary by attending the FEA Annual Conference in Chicago, IL in September
Did You Know?
1031 Boot Camp & 1031 Reverse Boot Camp Recordings Available for Purchase
 
Expand your knowledge of the 1031 industry through our two online offerings – 1031 Boot Camp and 1031 Reverse Exchange Boot Camp. Both three-hour sessions were recorded at the 2020 FEA Virtual Annual Conference. Unlimited access to the recordings and supporting materials can be purchased here Videos-on-Demand (1031.org)
FEA Annual Conference Programming Announced
FEA has selected programming for its 2021 Annual Conference with you in mind! Check out these topics:
 
  • 1031 and 1031 Reverse Exchange Boot Camps
  • Ethics
  • New Regulations
  • Economic update
  • Legislation update
  • Safety protocols (Like cyber security, insurance and mega-large deposits)
  • Annual tax update
  • Non-safe harbor
  • Who’s the tax payer
  • Tricky 1031 situations
  • Procedural timeline tax controversy in 1031 Case
  • Due diligence
  • Personal use
  • Diversity and inclusion
  • Cannabis / cash business sales in a 1031
 
FEA Annual Conference
1031 – A Century of Growth 
September 22–24, 2021
The Palmer House Hilton
17 East Monroe Street
Chicago, Illinois
#like-kindcelebrates100yrs
 
Click here for information to assist you with budgeting.
Click here for sponsorship opportunities.
MCLE Credit from California Received for the 2020 FEA Virtual Conference
FEA has received the approval of MCLE credit for the 2020 Virtual Conference.
 
If you need to have the MCLE certificate reissued from FEA to reflect the approved hours, contact Denise Hoffman, CMP, meetings@1031.org.
New Threats to Section 1031 Like-Kind Exchanges
1031 PAC
The FEA 1031PAC contributes to Members of Congress of both political parties. The FEA 1031PAC is funded by eligible individual employees. To become eligible, individuals must be employed by FEA member companies that have filed a Permission to Solicit form. A Permission to Solicit form is required by the Federal Election Commission before FEA can solicit eligible employees of member companies. 
 
Member companies are only permitted to grant one trade association permission to solicit their employees per calendar year. Contact Lynn Harkin at director@1031.org for more information.
 
FEA Member Key Contacts can find a Permission to Solicit Form here.
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