Bill Brown wrote:
- quote -

exchange", there is no further need of an intermediary, therefore his
office is vacated and just another potential investor?

But for it to work, there canna be anything in the contract about the
unspoken arrangement. A bit risky, I think.


ChEAr$,
Harlan

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On Jul 7, 6:59*pm, "Gil Faver" <rowdy'sb...[at]xxyz.com> wrote:
- quote -

Qualified intermediaries cannot provide other services to the taxpayer
trying to do a 1031 exchange.

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"Bill Brown" <brownwp[at]longwood.edu> wrote in message
news:edcfad7d-52f5-4ecc-9a0f-4e1933f88af8[at]c58g2000hsc.googlegroups.com...
- quote -

from the proceeds of the sale of the property, which is then invested to
provide the stream of income for the installment sale. Or so it would seem.

- quote -

What about disqualification concerns you? I don't know this reg.

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On Jul 7, 1:22*pm, Bill Brown <brow...[at]longwood.edu> wrote:
- quote -

That is, where does the "insurance" provider get the money?
- quote -

Now that I've read a tiny bit more closely I'm only concerned about
disqualification if the intermediary is also the "insurance" provider.

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On Jul 7, 12:58*pm, "Gil Faver" <rowdy'sb...[at]xxyz.com> wrote:

- quote -

I believe removeps's point may be illuminated by this question. Where
does the intermediary get the money to make the payments on the
installment sale contract?

I have another question. Does this existence of this guarantee by the
intermediary disqualify the intermediary under Reg Sec 1.1031(k)-1(g)
(4)?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<removeps-groups[at]yahoo.com> wrote in message
news:9304da62-2b88-4302-975f-1594ccf03e04[at]x35g2000hsb.googlegroups.com...
- quote -

no, it sounds like once you sell your property, and the replacement fails,
they qualified intermediary makes your sale an installment sale. The
paperwork has to be done ahead of your sale to allow this possibility.

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On Jul 6, 5:53 pm, "Gil Faver" <rowdy'sb...[at]xxyz.com> wrote:

- quote -

It sounds as if the qualified intermediary is promising to buy the
property if no one else does. It looks like an insurance program.
Maybe you pay a premium to take advantage of their service, and all
the premiums people pay will be used to buy properties for the 15% of
failures. If the premiums of future customers is used to pay your
installment capital gain, then a court could rule this to be a Ponzi
scheme, and you'd have to pay your capital gains back (though maybe
you would have a claim of right to get back the taxes you paid on it).

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Gil Faver" <rowdy'sboss[at]xxyz.com> wrote in message
news:aS7ck.99628$102.61903[at]bgtnsc05-news.ops.worldnet.att.net...
- quote -

ok, here is one such link:

http://www.nafep.com/1031%20Rescue/1031_rescue.htm

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I just ran across something touted as a "1031 rescue plan", that causes a
failed 1031 exchange to become an installment sale for the seller, deferring
taxes out into the future. Some of the numbers used in their example are a
bit odd, but the concept seems ok.

Anyone heard of this? I can post a link, but don't know the etiquette for
doing so on this group. I am not trying to spam, here, just pass on some
info and seek some comment.

========================================= MODERATOR'S COMMENT:
- links that are on-topic and either add to an open thread or
introduce a relevant tax related topic, are usually approved.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >