FEA Thanks Donors Supporting the FEA1031PAC |
2020 Year-End Recap of The Federation of Exchange Accommodators 1031PAC
Click Here to see the individual donors to FEA’s 1031PAC and the candidates who received contributions. |
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FEA Virtual PAC Fundraisers Raise Dollars & Awareness of the 1031 LKE Story |
Through virtual fundraisers sponsored by FEA and led by Dave Franasiak, Williams & Jensen, LLC and the Government Affairs Committee leadership, legislators from tax writing committees and those close to the Biden administration were educated about the economic impact of the 1031 exchange. The Zoom meetings offered a more extensive "one-on-one" setting than is typical for “in-person” fundraisers. FEA GAC members got screen time to visit personally with those key leaders from both political parties. We delivered relevant information and answered questions specific to their Districts, bringing 1031 from the abstract to the local. Many of our FEA members also wrote individual checks, so along with the FEA1031PAC contribution and a 100% match from the FNF PAC, FEA cemented its willingness both to educate and to support those lawmakers who support us. FEA is very grateful for those individuals who personally wrote checks and to the FNF PAC for their support. |
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28 FEA Member Companies give $156,018 in Additional Member Contributions |
FEA would like to thank the following companies who contributed above and beyond to help preserve the 1031 industry in 2020. We understand that not every company can open up their checkbook and give these amounts. Many have contributed in meaningful ways such as letter writing campaigns, FEA 1031 PAC contributions, getting their clients involved, producing materials/websites to inform educate their customer base, attending in-district meetings, recruiting new members to the FEA and contacting local media to tell the real-life stories behind 1031 exchanges.
The survival of the industry is our primary focus, and the FEA is proud that its members are up to this challenge.
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GAC Update - January 2021 |
As President Biden and Democratic leaders in Congress begin to advance their legislative priorities, it’s clear that a COVID stimulus package will be at the top of their agenda. Less clear, however, is exactly how Democrats in the U.S. Senate will navigate their narrow majority, whether they will work with Republicans to achieve bipartisan agreement and what specific items will be included in the final package.
Democrats may look to the budget reconciliation process as a way to advance economic stimulus priorities. Reconciliation is a procedural tool that is limited to spending measures, federal debt limits and certain tax issues. The process is particularly useful in the Senate because reconciliation bills require a simple majority of votes for passage, and can therefore bypass the usual 60 vote supermajority required to approve most Senate measures.
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In Other News….
State Updates from California and Washington
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California: At its December 2020 meeting, the California Franchise Tax Board (CA FTB) approved proposed legislative language to fix the FTB’s interpretation that the QI is responsible for withholding on “invisible boot.” Over the past year, GAC co-chair Suzanne Goldstein Baker worked closely with FEA GAC’s California team and FTB staff to arrive at legislative language that adequately addresses FEA’s concerns. Now that the legislative language has been approved, the FTB’s legislative liaison is in the process of looking for a legislator to author, or sponsor, the bill during the 2021 legislative session. Thank you to Suzanne and the entire FEA GAC California team for your important work on this issue.
Washington: Legislation, SB 5096, has been introduced in the Washington Senate that attempts to impose a capital gains tax on the sale of certain types of property at a rate of 9 percent. FEA submitted comments prior to the Jan. 14 Senate Ways and Means hearing on the bill. FEA is concerned that SB 5096, as written, could be misconstrued and broadly interpreted to disallow non-recognition of gain from 1031 exchanges at the state level.
According to an FAQ document from the Washington Department of Revenue, “If an amount of gain is not reportable on your federal tax return because it is exempt under federal law, it is also generally exempt from the Washington capital gains tax.” Nevertheless, FEA is concerned about the use of the word, “reportable” because the gain from an asset that was exchanged under Section 1031 is reportable on Form 8824 in the taxpayer’s tax return. However, the gain is not included or “reported” as part of the calculation of federal net long-term capital gain because that gain is not recognized. To avoid potential confusion FEA is proposing an amendment to SB 5096 to codify the legislative intent as expressed in the Department of Revenue FAQ and clarify that “reportable” does not include gain from non-recognition transactions.
Thanks to the FEA GAC Washington team – Suzanne Goldstein Baker, Jeff Helsdon, Mary Foster and Mary Cunningham – for their quick response to this legislation. The group will continue to monitor this issue as the 2021 legislative session continues.
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The Exam Will Be Offered Online
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Wednesday, April 7th
Application Deadline: March 5th
Early Bird Deadline: February 19th
Of course, the exam will also be offered again in conjunction with the FEA Annual Conference on September 22, 2021. The CES® Council has not yet made a determination if the exam will be offered in person in Chicago or online or both. Stay tuned.
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Lockton Insurance Brokers, LLC
Three Embarcadero Center, Suite 600
San Francisco, CA 94111
(415) 568‐4106 Phone
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180 Madison Ave., Suite 1500
New York, NY 10016
(646) 778-5560 Phone
(646) 646-349-2735 Fax
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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. |
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1031 Investment Services LLC
(845) 534-6818
Alma Bank
(718) 663-5335
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
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
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Meltzer, Lippe, Goldstein & Breitstone, LLP
(516) 747-0300
Millwork Commercial
(801) 899-1943
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
Seacoast Commerce Bank
(760) 550-2030
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
Wilmington Trust
(302) 636-6019
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From the FEA Executive Director's Desk |
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Have You Completed the Education Survey?
The information will be used by the FEA Ad Hoc Education Committee and the FEA Annual Conference Planning Committee to implement 2021 education events.
Your feedback will enhance the unique and exciting educational offerings FEA is planning!
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Did you know…..Since 1997, the FEA has offered its members direct and exclusive access to Fidelity Bonding and Errors & Omissions (E&O) insurance programs? Using its joint purchasing power, the FEA has negotiated preferred rates and broad coverage terms from A-rated insurers, specifically tailored to meet the needs of the 1031 industry. Check it out at http://1031.org//FEA/Insurance_Programs.aspx?
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We’re so excited about Chicago. There will be some optional activities coming your way so you can join your peers in experiencing the best of the Midwest. In the meantime, consider coming early and/or staying late to enjoy the Chicago area. Choose Chicago (https://www.choosechicago.com/) has a great list of things to do including:
- Biking
- Tours
- History
- Hikes
- Restaurants
- Sports
- Cruises
- Zoos
- Architecture
- Cheesecake
- Pizza
- And more!
More than ever, we are looking forward to seeing you Chicago!
FEA Annual Conference
1031 – A Century of Growth
September 22–24, 2021
The Palmer House Hilton
17 East Monroe Street
Chicago, Illinois
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New Threats to Section 1031 Like-Kind Exchanges |
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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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Federation of Exchange Accommodators
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