NAFEP Launches 1031 Rescue Strategy for Saving Failed 1031 Exchanges
The National Association of Financial and Estate Planning (NAFEP) has officially released its latest offering known as the 1031 Rescue. This new strategy was developed to compliment NAFEP's 1031 Exchange program. The 1031 Rescue strategy will provide for guaranteed deferral of taxes in the event that a client's 1031 Exchange fails. Presently, it is estimated that there are $150 billion in tax deferred exchanges conducted annually. It is also estimated that 15%-20% ($20+ billion) of these exchanges fail. The 1031 Rescue is designed for those failures.
Salt Lake City, UT (PRWEB) November 27, 2007 -- The National Association of Financial and Estate Planning (NAFEP) has officially released its latest offering known as the 1031 Rescue. This new strategy was developed to compliment NAFEP's 1031 Exchange program. The 1031 Rescue strategy will provide for guaranteed deferral of taxes in the event that a client's 1031 Exchange fails. Presently, it is estimated that there are $150 billion in tax deferred exchanges conducted annually. It is also estimated that 15%-20% ($20+ billion) of these exchanges fail. The 1031 Rescue is designed for those failures.
The 1031 Rescue is a tax compliant strategy that allows the 1031 exchanger to receive capital gains deferral in the event that their 1031 fails. This is accomplished through the use of NAFEP's Self Directed Installment Sale (SDIS) in conjunction with a 1031 exchange.
"With a typical 1031 exchange, if the exchanger fails to successfully complete the exchange, then they must pay all capital gains taxes in that tax year. Capital gains taxes can be 20% to 28% for both federal and state, depending upon the state.
The reasons for a 1031 failure may be due to:
- Not finding the replacement property
- Not closing on the replacement property with the 180 day window
- Seller backs out
- Terms of sale cannot be met
- Financing falls through
Commercial and investment real estate has seen significant appreciation in the last several years. This results in fewer properties that are available for 1031 exchanges, thereby compounding the replacement identification process."
Scott Janko
President, NAFEP
For additional information, Contact:
Scott Janko
National Association of Financial & Estate Planning (NAFEP)
PH: (801) 266-9900
FX: (801) 266-1019
info@nafep.com
www.nafep.com
http://www.nafep.com/1031%20Rescue/1031_rescue.htm
NAFEP was founded in 1993 and is in the business of providing the legal documents, structures and strategies required to support the financial planning and real estate community in meeting their client's estate planning needs.
NAFEP has a key competency of providing Tax Advantaged Real Estate investment strategies and structures for financial planning and real estate professionals.
These strategies and structures are accomplished through our Self Directed Installment Sale, 1031 Exchange, 1031 Rescue and Self Directed IRA/401K products and services
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