1031 Blog

Oil & Gas Investments: A Viable Alternative For 1031 Investors

(PRWEB) April 6, 2005 -- Introduction: As real estate prices continue to increase and investors are seeking different replacement property options for 1031 like-kind exchanges, Oil & Gas alternatives are beginning to emerge as viable alternatives for 1031 investors, and should strongly be considered to complement a real estate dominated portfolio. Section 1031 of the Internal Revenue Code classifies an investment in an Oil & Gas working interest or royalty interest (Oil & Gas production) as “like-kind” real estate for 1031 exchanges. An investor can exchange raw land, an apartment complex, an office building and all other types of investment real estate for an interest in Oil & Gas production.

Portfolio Diversification: While real estate prices have continued to increase, it has become difficult to accurately predict a profitable exit strategy for many passive real estate investments saddled with balloon financing and interest only loans. However, Oil & Gas production can provide a long term investment with secure cash flow without the headaches of additional 1031 exchanges for the investor. Also, Oil & Gas production is not management intensive, and the investment is wholly-owned by the investor who will. . . full release here.

Attention investors: Revisions affect 1031 exchanges

By Susan Belknap

With the strength of the California real estate market, especially in the Sacramento area, 1031 tax deferred exchanges are more popular than ever. However, a few revisions recently made to this real estate law make it increasingly important for sellers to be aware.

According to Nicole De Santis, exchange counsel for First American Exchange Company, a 1031 qualified intermediary in Sacramento, since 2003 all individuals who sell California real property and do not qualify for an exemption have been subject to a 3 1/3 percent withholding of the sales price. Individual sellers have been exempt from the 3 1/3 percent withholding if, among other situations, the property is the seller's principal residence or the transaction is a 1031 tax deferred exchange.

"In order to avoid the withholding, non-individual sellers such as California corporations, Limited Liability Companies (LLCs) and partnerships have been able to file a waiver from the withholding, which consequently has led to an increase in transfers of real estate into. . . full story here.

Accountants Remain an Untapped Resource for Savvy Investors

MIAMI, April 5 /PRNewswire/ -- The advice of certified public accountants
is often overlooked when it comes to real estate investments, a recent survey
of the accounting profession has found.  This oversight can cost investors
valuable tax savings.

One key finding of the survey of almost 700 CPAs was that clients do not
tap their CPAs' knowledge of Section 1031 of the Internal Revenue Code.  This
section of the tax code allows buyers and sellers of commercial property to
defer capital gains taxes by rolling the proceeds from a sale into another
investment property of equal or greater value. While the majority of the CPAs
surveyed said that they are familiar with the tax deferral benefits of Section
1031, almost half of them are not advising their clients to execute this
transaction. The reason, according to a quarter of the CPAs polled, is that
they are not consulted on. . . full release here.

1031 Investors Acquire Properties Totaling $115 Million

By Kristin Olson, Associate Editor

Clients of 1031 Exchange Options, a real estate investment consultancy, acquired three properties—two in Phoenix, Arizona, and one in Chatsworth, California—totaling $115 million. 1031 Exchange Options caters to individuals wishing to take advantage of the 1031 exchange, named after Section 1031 in the Internal Revenue Code, which allows investment property owners to defer capital gains tax payments.

Additionally, when individuals invest in Tenancy-In-Common (TIC), or as 1031 Exchange Options calls it, Co-ownership of Real Estate (CORE) properties an investor can upgrade into larger, institutional-grade properties. According to 1031 Exchange Options executive vice president Mark Johanson, marrying a 1031 exchange with CORE is a good solid investment that provides safe cash flow for investors changing their strategy from active management of the properties they. . . full story here.

Like-kind exchanges grow rapidly under boom or new phase prices

Petroleum Strategies, Inc., a sponsor and the organizer of this week's 11th Annual Executive Oil Conference, is in the business of handling what are called "Section 1031" exchanges, or "like-kind" exchanges. In a 1031 exchange, the owner of a qualifying property who wants to sell current properties and buy new ones can do so by following rules outlined in Section 1031 of the IRS code and thereby defer paying taxes on the sale of the exchanged property.

PSI vice president Ann Adams says high oil prices have contributed to a boom in like-kind exchanges over the past year. "I have worked at PSI for 10 years, and last year was our biggest year, volume-wise and dollar-value-wise," she said.

As prices for oil and gas have climbed, the value of producing properties has escalated as well, creating a larger tax burden for property owners who sell outright. Because 1031 exchanges allow sellers to defer taxes because the money from the sale is reinvested in "like-kind" property. . . full release here.

Commercial Capital Bancorp, Inc. Announces New Director Appointment at Bank Subsidiary

IRVINE, Calif.--(BUSINESS WIRE)--March 30, 2005--Commercial Capital Bancorp, Inc. (the "Company") (NASDAQ:CCBI) announced today that Carlton Lofgren was appointed to the Board of Directors of Commercial Capital Bank (the "Bank"), the Company's bank subsidiary, effective March 24, 2005. Mr. Lofgren was an initial shareholder and charter member of the board of directors of Mission Savings and Loan, which was acquired by the Company in January 2000. Mr. Lofgren currently serves as President and Chairman of the Board of McAnally Family Farm, Inc.

Mr. Lofgren received a Bachelor's Degree from La Sierra University, where he now serves as a member of the La Sierra University Foundation. Mr. Lofgren graduated from the School of Dentistry at Loma Linda University, where he currently serves as a member of the Board of Trustees. Mr. Lofgren practiced dentistry in Riverside, California until 1971, when he started his career as Vice President for McAnally Enterprise, an agricultural business headquartered in Yucaipa, California. During his tenure at McAnally Enterprise, Mr. Lofgren became President in. . . full release here.

Farmland sold for more in '04

By Chris Anderson

BLOOMINGTON -- Nearly 25 years ago, Central Illinois farmland sold at $4,000 per acre for the first time. Farmland prices soared 25 percent, bolstered by strong world exports and steadily increasing grain prices.

It's happened again, but for different reasons. Central Illinois farmland values increased as much as 16 percent last year and 20 percent statewide.

Those are findings from the latest farmland survey by the Illinois Society of Professional Farm Managers and Rural Appraisers.

The group asks members every year to gauge trends in farmland values. The survey covered farmland sales in 2004.

Not much has changed so far this year. Wapella auctioneer Jay Haycraft conducted a multiple estate sale of Livingston County farmland in February. Sale prices ranged from $2,550 per acre for 234 acres to. . . full story here.

New How-to-Do Book on Real Estate 1031 Exchanges

Ed Horan's book on "How-to-Do a Like Kind Exchange of Real Estate - Using a Qualified Intermediary" (ISBN: 1-41204614-9) has been published by Trafford Publishing.

Haymarket, VA (PRWEB) March 29, 2005 -- With the unprecedented appreciation of real estate investment and business property, taxpayers are looking in greater numbers for a way to defer paying large capital gain taxes.

Ed Horan, a nationally recognized qualified intermediary for the exchange of like kind investment and business property, has just published his book “How to Do a Like Kind Exchange of Real Estate – Using a. . . full release here.

Real Estate Investors Should Know What They Are Getting Into

By Jennifer Plotnick

RISMEDIA, March 28 – (KRT) – Rudy Flores still works 40 hours a week, but only because he wants to. His finances are set with investments.

Flores jumped into buying real estate in Bakersfield, Calif., in 1998. Now he has about $2 million in assets and $1 million in equity. His three sons are set for college, even though they're only 14, 6 and 4 years old.

"My cash flow pays for my Seven Oaks home," said Flores, a high school graduate. "It's getting better all the time."

Flores continues to see success through investing. But he started investing when property was cheaper in. . . full story here.

Are farmers getting fair deal?

By Natalie J. Ostgaard, City Editor

Are farmers getting a fair deal? The consensus of the dozen or so people attending a listening session sponsored by the Center for Rural Affairs and Minnesota Agri-Women was that they are most definitely not.

The farm policy discussion was held Monday evening at the Golden Link Senior Center in Crookston. Only a handful of people attended another session Tuesday night in Thief River Falls, where they talked mostly about value-added businesses.

Kim Leval, senior policy analyst with the CRA, flew in from her home in Oregon to moderate the discussions. The CRA is a non profit organization based out of Nebraska that works to promote. . . full story here.