BULLETIN BOARD Jan 21, 2008
1031 Exchange Seminar. With Katharine Holland of Coldwell Banker and Larry Weiss of Lau Financial Services, 6-7:30 p.m., 2355 Market St., San Francisco, free, reservation required, (415) 437-4588. (San Francisco Chronicle)
Getting A Handle on 1031 Exchange Rules Jan 7, 2008
Most buyers and sellers of real estate look at 1031 exchanges as an option as they consider their investment agenda ... In 1991, the IRS issued definitive guidelines that clarified 1031 exchanges and the role played by facilitators, accommodators or as they are technically known qualified intermediaries ... It is critical to have an accommodator in place before you close on the sale of your property to preserve your 1031 exchange. (RealtyTimes)
1031 Exchanging from Brick&Mortar to Oil&Gas Dec 29, 2007
While the tax deferral benefits of a 1031 Exchange can be very significant, there is another reason to consider a tax-deferred exchange. The 1031 Exchange provides the opportunity to diversify your investment portfolio, without triggering a tax liability ... The depreciation recapture, which is federally taxed at 25%, may also be deferred through the 1031 Exchange. (RealtyTimes)
Benny Kass: Home seller must pay tax on 'phantom income' Dec 24, 2007
But you are correct: 1031 exchanges are not for everyone, and here are some of the negative aspects ... In those cases, it is just not worth going through the complex legal requirements of a 1031 exchange ... When you ultimately sell the new property, unless you do yet another 1031 exchange (or die), you will have to pay all of the capital gains that you deferred by doing the exchange. (San Francisco Chronicle -- Politics)
Ken Tharp, Iowa Equity Exchange Dec 22, 2007
The primary strategy for retirement when a family has no heirs ready to replace them has been the 1031 exchange. The rational for this provision is perhaps to put limitations on farm subsidy programs as well as to limit the use of 1031 exchange proceeds in acquiring farm/ranch ground as it may be driving up prices ... Jeff Kornfeld wrote on Dec 6, 2007 7:30 PM:" Thanks Richard...very informative. What if you could sell your property and not have to buy replacement property (like a 1031 exchange)... (Great Falls Prairie Star, MT)
Tax provision of farm bill is disservice to farmers, ranchers Dec 7, 2007
The primary strategy for retirement when a family has no heirs ready to replace them has been the 1031 exchange. The rational for this provision is perhaps to put limitations on farm subsidy programs as well as to limit the use of 1031 exchange proceeds in acquiring farm/ranch ground as it may be driving up prices. (Great Falls Prairie Star, MT)
Judge postpones Lexington sale to Dec. 20 Nov 30, 2007
Meanwhile, the judge denied iStar Financial's request to schedule a hearing for Dec. 6 or 7 to approve a 1031 exchange with another bidder, A 1031 exchange, named after a section of the IRS tax code, is the exchange of one type of property for another. Shuker, and other attorneys representing creditors, argued that such a proposal was inappropriate without a letter of intent or good faith deposit from the bidder. (Orlando Business Journal)
Going Commercial Nov 23, 2007
Don't be too avid to do a so-called Section 1031 exchange, a swap of one investment property for another that enables you to postpone the capital gain tax on the property you're giving up ... --Is a 1031 exchange worthwhile, or will the delayed tax benefits be eaten up by fees. (Forbes)
1031 Exchanges: It's a Tax Thing Nov 20, 2007
"At a time when there are so many listings, investors may want to buy, but hesitate because of the taxes they will incur if they sell their current properties. She suggests that you approach owners and show them that by using a 1031 exchange they can buy a property that better suits their current investment goals without incurring current taxes. And because of depreciation recapture provisions, which tax accumulated depreciation, an exchange may be a good option even if an investor isn t... (Realtor Magazine Online)
Landlord Issues: Don't Want a Big Tax Bill? Nov 15, 2007
On the sale of an investment property that has been held long enough to generate significant appreciation while a significant amount of depreciation has been taken, it is not unusual for 30 to 40 percent of the proceeds from the sale to be paid in taxes if the seller does not 1031 exchange into another property ... The 1031 Exchange is the ideal tool to move from a management-intensive property into an Absolute Net-Leased property. (RealtyTimes)
Ventas Reports Third Quarter Normalized FFO Per Common Share of $0.66 and FAD Per Common Share of $0.62 Nov 9, 2007
" Normalized FFO for the nine months ended September 30, 2007 was $242.9 million, or $2.03 per diluted common share, a 32 percent increase from $184.0 million, or $1.76 per diluted common share, for the comparable 2006 period. Normalized FFO for the three and nine months ended September 30, 2007 excludes the net benefit (totaling $8.5 million and $34.4 million, respectively) of gains from merger-related currency transactions and income taxes, as well as a gain on the sale of securities, offset... (PR Newswire)
What Do I Invest In? Oct 30, 2007
We took the proceeds from the sale of all 10 units and executed a 1031 exchange, which allows you to defer paying the capital gains taxes to a later date--and possibly never--if you've planned and structured things well. We moved the money into a 288-unit apartment building in Tucson, Arizona. (Entrepreneur)
Darrow pleads 'not guilty' in Mile High-related case Oct 29, 2007
The former manager of the defunct (RPS) 1031 exchange company pleaded not guilty Oct. 23 in Denver District Court to theft charges tied to an alleged Ponzi scheme. Richard Darrow faces 27 criminal charges -- including 13 counts of theft, 11 counts of securities fraud, one count of violation of Colorado's Organized Crime Control Act and two counts of conspiracy to commit securities fraud. (Denver Business Journal, CO)
Cross & Co., ProLogis wrap up real-estate exchange deal Oct 29, 2007
Locally based real estate firm and Denver-based real estate investment trust ProLogis have completed a property swap through what is known as a 1031 exchange. The deal involves industrial assets located in various pockets of the greater San Antonio market. (San Antonio Business Journal, TX)
Popular property investment tool under scrutiny Oct 23, 2007
The rate of investment has been steadily increasing since a 2002 Internal Revenue Service clarification made them part of a popular tax break, known as a 1031 exchange, in which owners may sell assets and defer capital gains if they invest the money in a like-kind asset within a certain period of time. This article is for Paid Print Subscribers ONLY.. (Washington Business Journal, DC)
Renovations bring opportunities for Winnebago, Hancock Counties Oct 10, 2007
He also purchased two buildings in New Hampton as was required by the guidelines of his 1031 Exchange program. He started restoring his Main St., Garner acquisitions with the help and supervision of his parents. (Forest City Summit, IO)
Senate Finance Committee OKs permanent ag aid Oct 7, 2007
Additionally, the Finance Committee approved a provision that wouldn't allow farmland for which the owner had received farm program payments to be swapped in a 1031 exchange for improved property. While that move only generates $27 million dollars in revenue over 10 years, it is a reform that may help limit the role of 1031 exchanges in artificially inflating farmland values. (Brownfield)
Retirement Funds Evaporate as Bankruptcies Scorch Tax-Deferred Investments Sep 12, 2007
The intermediaries are known as 1031 exchanges, named for a provision of U.S. tax law that defers capital gains taxes if the seller of a property buys another like it within six months ... Transactions must be handled by so-called qualified intermediaries like 1031 exchanges, which have temporary custody of about $150 billion a year, an industry group says ... Tax-deferral services are provided by institutions ranging in size from banks such as Wachovia Corp. and JPMorgan Chase & Co. to... (Bloomberg)
Farmland bringing record prices -- and still on the rise Sep 11, 2007
Even a provision of the federal tax code - the so-called "1031 exchange" - has helped push up farmland prices the last few years, said Carroll Merry, executive director of the farm managers and appraisers society. He explained a 1031 exchange generally allows investors to defer taxes on property sales, including farmland, if the proceeds are invested in another piece of property within time limits set by the code. (Harrisburg Daily Register, IL)
Property Sales Tax Breaks Aug 29, 2007
"There's so much equity that's been built up throughout the last five years or more. People don't want to pay capital gains taxes which can be as high as 30 percent of the gain," says attorney David Greenberger who is president of 1031 Exchange Advantage, Inc. ... "[The 1031 exchange] can even be used on a personal residence that's converted into an exchange property, and the way you do it is you move out of your residence and a year later it can be an exchange property," he says ... A 1031... (RealtyTimes)
Housing Counsel: Tax Treatment of Your Vacation Home Aug 13, 2007
Although I am not familiar with any case law in this area, it would be my opinion that such properties would not be eligible for 1031 exchange purposes. If your property has appreciated considerably in value, and you want to do a like-kind (1031) exchange, stop using it for at least two full years, rent it out, and then it will be considered "investment" property. (RealtyTimes)
How To Make More Money with My Real Estate Investments Aug 7, 2007
His CPA reminded Dr. Morgan that, "in order for an investor's 1031 exchange to be completely tax deferred, the value and equity of the replacement property should be equivalent to or higher than that of the relinquished property. If you take cash out or go down in value in your replacement, then you will pay taxes on that portion of the transaction." ... The 1031 exchange offers many investment options for the Doctor ... Finally Barry tells him not to sell anything using a 1031 exchange unless... (RealtyTimes)
Citywide Banks launches 1031 exchange company Jul 31, 2007
has formed a 1031 exchange subsidiary called Citywide Exchange, the bank announced Monday. Gary Gorman, head of Greenwood Village-based The 1031 Exchange Experts, LLC, will oversee operations ... 1031 exchanges provide a way to defer federal capital gains taxes on real estate sales, by rolling proceeds into another qualified property within six months. (Denver Business Journal, CO)
1031 Exchanges on Personal Property Jul 23, 2007
Can they do a 1031 exchange ... Since the two classification codes pertaining to the personal property are different, Fred and Sue would not be able to do a 1031 exchange for the personal property part of the sale ... Since 1994 he has educated realtors, investors, CPAs and attorneys throughout the United States and Mexico on the intricacies of 1031 Exchanges. (RealtyTimes)
Skyrocketing farmland prices a growing concern in Midwest Jul 19, 2007
Another factor behind land price gains has been the so-called 1031 exchange tax provisions, which allow owners of an income, business or investment property to sell and then replace it with a like-kind property and defer capital gains taxes. That has pushed up prices, as farmers have sold land near urban areas, often to housing developers, and bought land farther out in the country. (USA Today -- Money)
The Real Economy Jul 8, 2007
On a rental you can get a tax free exchange (1031 exchange) to defer the income tax due on sale ... On a rental you can get a tax free exchange (1031 exchange) to defer the income tax due on sale. (Townhall.com)
Scrutinize companies that hold your money Jun 30, 2007
According to a June 6 newsletter from CoStar Group, a leading real estate research organization, a recent spate of failures by exchange facilitators -- technically called the "qualified intermediary" -- is causing an upheaval in the 1031 exchange industry ... Shaw recommends that before doing a 1031 exchange you check out the Federation of Exchange Accommodators Web site at , which has education material and a list of their members by state. (Anchorage Daily News)
1031 exchange can boost portfolio Jun 24, 2007
Utilizing the power of the 1031 exchange and leverage, the investments in the second scenario total a whopping $9 million more worth of real estate ... We have illustrated how powerful the 1031 exchange can be in building a real estate portfolio ... Options such as tenant-in-common (TIC), Delaware Statutory Trusts (DSTs), oil and gas programs, and raw land banks can satisfy IRS requirements for 1031 exchange replacement property and remove burdens of day to day property management. (Seacoast New Hampshire)
Health Benefits Building sells for $9.22M Jun 23, 2007
"The 1031 exchange tax deferment has become an instrumental part of many real estate transactions," he said. However, the executive said finding a "like kind" property to avoid capital gains taxes can be challenging. (South Florida Business Journal, FL)
Ri$k and reward Jun 20, 2007
MARCELA RIOS GARY / SAN ANTONIO BUSINESS JOURNAL Mike Hoover, vice president of D.B. Harrell Commercial Real Estate, says hell only recommend insured entities, like banks and title firms, to facilitate a 1031 exchange ... The 1031 exchange has been popular since its inception in the 1920s, but has only become common practice since IRS codes were simplified in 1991 ... That restructuring of the tax code paved the way for thousands of self-proclaimed "qualified intermediaries" to enter the 1031... (San Antonio Business Journal, TX)
Net Gain Answers Real Estate Investors Most Important Questions Jun 20, 2007
Can a 1031 exchange be used with a rental property and a residence. What affect does the current housing slowdown have on income property. (Yahoo News -- Press Releases)
Con Artist? or Good Guy in Trouble? Jun 19, 2007
Since 1994 he has educated realtors, investors, CPAs and attorneys throughout the United States and Mexico on the intricacies of 1031 Exchanges ... Gary is the owner and managing partner of the national firm, 1031 Exchange Experts, LLC, which headquarters is located in Denver, Colorado, and offices in Arizona, Connecticut, Florida, Hawaii, and Texas ... As a Qualified Intermediary, Gary has been involved in more than 30,000 1031 Exchange transactions since 1994. (RealtyTimes)
Possible Hotel Fresno buyer backs out Jun 12, 2007
"But there are a lot more deals that are less convoluted than this."The buyer wanted to use 1031 Exchange laws to invest proceeds from a real estate sale into the hotel without a tax penalty. But the time constraints in an exchange -- 45 days to find a property and six months to close a deal -- concerned the buyer, Story said. (Fresno Bee -- Business)
I-Team: Judge Rules Former Owner of Collapsed Financial Firm Must Testify May 23, 2007
The I-Team first brought you the story of Southwest 1031 Exchange -- which closed its doors in January ... McGhan said: "Because of SWI's (Southwest Exchange) present inability to collect principal and/or interest upon debt instruments issued in SWI's favor, SWI's business has been and is being conducted at a great loss and greatly prejudicial to the interests of its creditors, SWI clients and stockholders, so that its business cannot be conducted with safety to the public. The affidavit was... (KLAS-TV.com, NV)
Grand hotels May 20, 2007
The prospective buyer recently sold another property and wanted to invest the proceeds in other real estate through a tax-deferred 1031 exchange. Story said he was attracted to the historic Hotel Fresno because of its downtown location and its solid exterior construction. (Fresno Bee)
Fractional fairy tales: Vacation TICs are big business May 13, 2007
New tax laws have also made the vacation TIC less risky: In 2002, the IRS ruled that TIC interests could be used as a replacement property in a 1031 exchange -- allowing people to buy and sell shares of vacation properties as investments as well as second homes. "The idea came from watching all these multimillion-dollar homes on Lake Tahoe sit empty all year," says Jeff Cutler, president of Dreamslice and an attorney as well as broker. (San Francisco Chronicle -- Business)
I-Team: Expanded Control in Henderson Financial Firm Collapse May 9, 2007
On Tuesday, a judge expanded control over what's left of the assets of Southwest 1031 Exchange ... On Tuesday, District Court Judge Elizabeth Gonzalez ordered court-control over several more companies linked to the former owners of Southwest 1031 Exchange ... Mark Dzarnoski, the attorney for Don McGhan, one of the former owners of Southwest 1031 Exchange, objected to the expanded control. (KLAS-TV.com, NV)
Rev Up Your IRA May 9, 2007
An important factor is that, unlike personally owned real estate, a quick sale will not require a 1031 exchange to defer income taxes. You can sell and buy new real estate at will with no minimum time requirements. (Forbes)
West Oaks Square sold May 9, 2007
Boise, Idaho-based Spectrus is a real estate investment firm which focuses on tenants-in-common industry, as well as the 1031 exchange market. A 1031 exchange is a real estate transaction where a owner sells one property and acquires another and pays no capital gains tax on the transaction. (Orlando Business Journal)
IT'S TIME TO CASH IN REAL ESTATE May 6, 2007
The team gave Hurst some guidance on using a popular real estate tax treatment structure, known as a 1031 exchange, if she decides to reinvest in more real estate in Tennessee. But Hurst thinks she instead will invest in a low-fee portfolio of broadly diversified stocks and fixed-income products to build her nest egg for the years ahead. (Orlando Sentinel -- Business)
Woman looks to diversify nest egg out of real estate May 5, 2007
"There could be another decline. There's no guarantee." The team gave Hurst some guidance on using a popular real estate tax treatment structure, known as a 1031 exchange, if she decides to reinvest in more real estate in Tennessee. But Hurst thinks she instead will invest in a low-fee portfolio of broadly diversified stocks and fixed-income products to build her nest egg for the years ahead. (Orlando Sentinel -- Business)
Post Properties Q1 net income rises May 1, 2007
During the first quarter of 2007, the company, through a Section 1031 exchange intermediary, sold its Post Oak apartment community in Atlanta for an aggregate gross sales price of $24 million. The company also divested a 5. (Atlanta Business Chronicle, GA)
Ask Realty Times Apr 27, 2007
Can we do a 1031 exchange for this property ... "Assuming that the vacation rental home you plan to sell qualifies as a 1031 exchange relinquished property, your purchase of a 1/13 interest as a replacement property will not qualify. "The reason for this is that the IRS considers the personal use of the property by any co-owner as being personal use by you. (RealtyTimes)
$10 Million Traced From Henderson Financial Firm Collapse Apr 26, 2007
New information Wednesday night on the case of a collapsed Henderson financial firm called Southwest 1031 Exchange. Now the Nevada secretary of state says it has traced some of the missing money. (KLAS-TV.com, NV)
I-Team: Henderson Financial Firm Collapse Affects Couple Apr 19, 2007
The company -- called Southwest 1031 Exchange -- held money during real estate transactions so customers could defer paying taxes ... When they sold the cabin last December, $433,000 was sent to Southwest 1031 Exchange. (KLAS-TV.com, NV)
Spend Every Dime!: Apr 13, 2007
For starters, we could do the same thing for regular savers as we do for real-estate investors: Change the definition of a "realized gain." Real-estate investors can take advantage of a "1031 Exchange," which allows them to take gains from the sale of one property and reinvest them in another without triggering a tax event. The same system should apply to other investments: If you own a stock or fund that has doubled, you shouldn't be forced to hang onto it just to avoid triggering a taxable... (Slate)
Simultaneous Closings Can Save You 1031 Exchange Fees Apr 3, 2007
Rule #4 of my six basic rules for 1031 exchanges is you can not touch the money between the sale of your Old Property and the purchase of your New Property ... Since 1994 he has educated realtors, investors, CPAs and attorneys throughout the United States and Mexico on the intricacies of 1031 Exchanges ... As a Qualified Intermediary, Gary has been involved in more than 30,000 1031 Exchange transactions since 1994. (RealtyTimes)
Class-action suit details how property owners lost millions Mar 27, 2007
Because the real estate market was hot in 2004 and 2005, money coming in for new 1031 exchanges could be used to cover funds deposited for previous exchanges that McGhan and his cohorts had already raided, the lawsuit claims ... Together, they allegedly raided 10 million in 1031 exchange funds from QES before the scheme finally collapsed in January, according to the lawsuit. (Lompoc Record, CA)
How you can check out financial advisers Mar 25, 2007
" Pretending you took out the money is not an option. What you can do is get an accurate valuation of the property. Then, figure out your required distribution for the year. If your required distribution is 4 percent, ask the IRA custodian to transfer or deed 4 percent of your ownership interest in the partnership or property out of your IRA into an account in your own name. You will owe income tax on the amount transferred. If you have another IRA that is invested in liquid assets like stocks... (San Francisco Chronicle -- Business)
I-Team: Steeper Losses for Collapsed Financial Firm Mar 17, 2007
Donald K. McGhan, the owner of Southwest 1031 Exchange ... There's more bad news for customers caught up the collapse of a Henderson financial firm called "Southwest 1031 Exchange." The Channel 8 I-Team first broke this story in January ... Attorneys on Friday also revealed Southwest 1031 Exchange was covered by what's called "commercial crime" insurance policies from 2005 to 2007. (KLAS-TV.com, NV)
Berry Town Center sells for $25M Mar 17, 2007
The Publix-anchored portion of the complex was sold via a 1031 exchange ... "The 1031 exchange tax deferment has become an instrumental part in many real estate transactions, particularly in the sale of Berry Town Center," Klepal says. (Orlando Business Journal)
'Ponzi Scheme' Lawsuit Filed in Henderson Missing Money Case Mar 14, 2007
More clues surfaced Tuesday in the case of money missing from a collapsed Henderson financial firm called Southwest 1031 Exchange ... The company -- called Southwest 1031 Exchange -- closed its doors at the end of January ... The state of Idaho has now taken action against Southwest 1031 Exchange. (KLAS-TV.com, NV)
Doing a 1031 Exchange? A TIC Could Be the Solution Mar 5, 2007
Doing a 1031 Exchange ... Current tax laws require that those who choose to use the 1031 exchange vehicle have to select a replacement asset within 45 days and then close on it within 180 days ... "A lot of investors who are doing a 1031 exchange love the TICs because they are pre-packaged. Essentially an investor could study the available property and could be invested within a matter of weeks," says Kathy Heshelow author of Effortless Cash Flow: The ABC's of TICs (iUniverse, 2006). (RealtyTimes)
Ask an expert Mar 4, 2007
Question: I am selling appreciated land and have been approached by an adviser about a 1031 exchange ... Answer: A 1031 exchange will defer the tax on the sale of investment property, providing certain requirements are met. (Orlando Sentinel -- Business)
I-Team: New Clues in Henderson Missing Money Case Mar 2, 2007
The company -- called Southwest 1031 Exchange -- closed its doors at the end of January ... Attorney Anthony Zmaila says there could be as many as 20 corporate entities -- in 11 different countries -- which possibly received some of the money from Southwest 1031 Exchange ... Southwest 1031 Exchange allowed customers to defer federal taxes during real estate transactions. (KLAS-TV.com, NV)
I-Team: CEO of Collapsed Financial Firm Caught on Tape Feb 28, 2007
Southwest 1031 Exchange held money during real estate transactions so customers could defer paying federal taxes ... The answering machine recorded the calling number as 454-1031, which is the former phone number for Southwest 1031 Exchange ... By the following Monday, Southwest 1031 Exchange had closed its doors. (KLAS-TV.com, NV)
Henderson Financial Firm's Money Woes Spread to Idaho Feb 27, 2007
The state of Idaho has now taken action against Southwest 1031 Exchange ... The company also operated a now-defunct subsidiary in Idaho called Arrow 1031 Exchange. (KLAS-TV.com, NV)
JOHN L. SMITH : Longtime dancers find retirement dream vanished in business scandal Feb 27, 2007
91 the Albrittons entrusted with Southwest to take advantage of the IRS 1031 exchange rules that allow the sale of real estate and the reinvestment of the proceeds without paying capital gains tax. But that money, which resulted from the sale of a small cabin in Kyle Canyon the couple had spent the better part of three decades nurturing and redecorating, was the manifestation of their dancers' retirement plan. (Las Vegas Review-Journal -- Nevada News)
Housing Counsel: Like-Kind Starker Exchange Feb 26, 2007
The theory behind the 1031 exchange is simple: it encourages people to upgrade investment property so that moneys which would otherwise go to the IRS will instead be plowed back into the new investment property. But because the basis remains the same, when the replacement property is ultimately sold (and not involved in yet another 1031 exchange) then the full capital gains tax will be paid ... For example, if the taxpayer used her attorney for legal services (other than for the 1031 exchange),... (RealtyTimes)
Ventas Reports Fourth Quarter Normalized FFO of $71.2 Million and FAD of $66.0 Million Feb 21, 2007
360 Discontinued operations: Rental income $- $- $- $- $230 Interest and other income - - - - 165 Interest expense - - - - (81) Depreciation - - - - (15) Income before gain on sale of real estate - - - - 299 Gain on sale of real estate - - - - 5,114 Discontinued operations $- $- $- $- $5,413 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2006 and 2005 (Audited) 2006 2005 Cash flows from operating activities: Net income $131,430 $130,583 Adjustments to reconcile... (PR Newswire)
I-Team: Judge Appoints Committee in Missing Money Case Feb 21, 2007
Southwest 1031 Exchange went out of business at the end of last month ... Southwest 1031 Exchange was a company that allowed clients to defer federal taxes when they bought and sold real estate ... Last week, Nevada Secretary of State Ross Miller froze all the funds of Southwest 1031 Exchange after serving criminal search warrants. (KLAS-TV.com, NV)
Eric M. Anton Feb 14, 2007
The demand is driven in part by the desire to defer federal taxes by investing the money from the sale of commercial real estate into other, similar real estate, which is known as a 1031 exchange. Johnson wasn't sure if the sale of the 90 State St. building was the result of a 1031 exchange, but other investors are drawn to the region for that very reason. (Albany Business Review, NY)
I-Team Investigation: $83 Million Missing After Firm's Collapse Feb 13, 2007
But tonight, a district court judge is ordering a local bank to release all the financial records of the company called Southwest 1031 exchange ... By the time Southwest 1031 Exchange closed its doors two weeks ago, many investors already suspected trouble ... Firms like Southwest 1031 Exchange hold money during real estate transactions as a way for clients to avoid paying federal tax. (KLAS-TV.com, NV)
Court Action in Henderson Missing Money Case Feb 7, 2007
At least nine lawsuits have been filed over the collapse of the company called Southwest 1031 Exchange ... When Southwest 1031 Exchange closed its doors last week, court filings now say at least 75 customers had money with the company ... " As for where the missing money is, Dzarnoski would only say Southwest 1031 Exchange did have some financial problems but that was the extent of his comments. According to documents filed in court, some clients of the business began to have suspicions about... (KLAS-TV.com, NV)
Company closes, draws investigation Feb 1, 2007
It's not clear whether Southwest Exchange, which also does business as Southwest 1031 Exchange and Southwest Exchange Corp., still has money that real estate investors trusted the company to hold to get tax breaks. Advertisement. (Las Vegas Review-Journal -- Business)
