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Federation of Exchange Accommodators – The Road Ahead

This year's FEA conference provided an important forum for those in the 1031 industry to refine and expand efforts to preserve Section 1031.
FEA 2016 Annual Conference

Last month the Federation of Exchange Same as intermediary, facilitator, or Qualified Intermediary. The party who facilitates a tax-deferred exchange by acquiring and selling property in an exchange to aid the taxpayer in complying with Section 1031 and all applicable rules. Accommodator s (FEA) held its annual conference in Las Vegas.  The FEA is the national organization that represents professionals engaged in the practice of facilitating like-kind exchanges, known as qualified intermediaries (QIs).  The FEA also counts as members, professionals not acting as QIs, but providing important services related to Section 1031 transactions.  This year, economic expansion has resulted in higher attendance numbers, translating into one of the biggest conferences in recent memory.

This year’s meeting provided a forum for electing officers, conducting critical strategic planning sessions, and for leading highly informative educational sessions.

Election of Officers

This year, Accruit’s own Steve Chacon, Vice President of Exchange Service Operations was elected as the association’s president.  Also elected were:

  • Teresa Person, President-Elect
  • Mike Anderson, Treasurer

Margo McDonnell will continue to serve as the association’s Immediate Past President.

Strategic Planning

Prior to the conference’s kickoff, the association’s Board of Directors met to focus upon legislative issues.  The FEA Board of Directors also met for a wider strategic planning session to ensure the organization continues to effectively serve its membership through an updated plan to guide the organization into the future.

A Focus on Legislative Issues – Threats to Section 1031

The FEA’s Government Affairs Committee, Co-Chaired by Accruit CEO, Brent Abrahm, assembled an agenda to identify and guide the board through legislative challenges that lie ahead, including:

  • The House Republican Blueprint for Tax Reform  
  • Senator Ron Wyden’s proposal for depreciation pooling  
  • The President’s proposed 2017 budget
  • Overall tax reform plans

Threats also lie within proposals to limit like-kind exchanges from Secretary Clinton and Nominee Trump.  Trump’s campaign has expressed interest in eliminating corporate tax expenditures which could directly impact Section 1031 and the role of the QI.

A Focus on a Wider Strategy

Leveraging feedback from the association’s membership, the board conducted a strategic planning session that included the following targeted outcomes:

  • Identifying mission and core values
  • Confirming the vision statement
  • Confirming key goal areas
  • Listing actions, responsibilities and time frames

The process for achieving the targeted outcomes included:

  • Reviewing targeted outcomes for the session and the strategic planning model
  • Identifying member characteristics and statistics
  • Sharing survey results
  • Setting goal performance measures

The FEA’s Board of Directors is currently reviewing, refining and finalizing the FEA’s wider strategic plan.  The final plan will incorporate the results of the legislative strategic planning session and provide a comprehensive roadmap for the preservation and expansion of the association.

Educational Sessions

This year’s educational lineup included a host of technical experts conducting sessions with topics such as:

The Road Ahead

Like-kind exchanges have been a hot topic amongst our federal lawmakers.  With recent focus on federal deficits, budgets, tax reform and Presidential Nominee Trump’s tax returns, like-kind exchanges represent a significant revenue-raising opportunity.  The FEA’s conference provided an important forum for those in the like-kind exchange industry to come together to refine and expand efforts to preserve and expand Section 1031.