Technology & 1031 Like-Kind Exchanges, part 1

If you read enough of the Accruit Website, you'll notice that we talk a good bit about how technology plays an important role in the processing of successful 1031 Refers to the "nature or character" of the property and not to its "grade or quality." That is, real property held for investment or the productive use in a trade or business may generally be exchanged on a tax-deferred basis for other real property. Personal property held for investment or the productive use in a trade or business may generally be exchanged on a tax-deferred basis for other personal property, provided the personal property is of "like kind" or "like class." Professional tax advice should be obtained when planning exchanges. Like-Kind Exchanges (LKEs).  We obviously think this is an important reason to do business with us, but it's possible that some readers may want to know more about why a technology-driven process is so beneficial to them.

There are a number of ways in which a software-based process helps you, and addressing them all at once might be too much for one sitting. So let's call this part one of a series.

Up first, technology assures your compliance with key milestones. Without the use of advanced technology you're relying on manual processes to ensure that your exchange falls within the Section 1031 regulations.  Many key milestones take place during the course of an exchange, and if they're not met you won't be able to complete the exchange.  For example, if you do not purchase replacement property by day 45, you must provide your qualified intermediary (QI) with identified property you plan to purchase by day 180.  A QI cannot accept identifications after day 45, so if you aren't properly reminded to follow this step, you will not be able to complete the exchange.

In addition to managing the exchange process, having an online resource available 24x7 to look up information about your exchange is very comforting...you don't need to wait for normal business hours to have your questions answered.  With the Accruit LKE solution you are able to look up your account balances and other key information online, anytime, anywhere.

Accruit has the only patented process for performing Refers to the "nature or character" of the property and not to its "grade or quality." That is, real property held for investment or the productive use in a trade or business may generally be exchanged on a tax-deferred basis for other real property. Personal property held for investment or the productive use in a trade or business may generally be exchanged on a tax-deferred basis for other personal property, provided the personal property is of "like kind" or "like class." Professional tax advice should be obtained when planning exchanges. Like-Kind Exchanges over the Internet.  This not only ensures that you're kept informed of key steps in an exchange using technology, you have information available to you 24x7.

I believe this is a fundamentally better way of completing 1031 exchanges. Check back periodically for more reasons why a tech-enabled solution is your best option.