RISMEDIA, July 23, 2008-First American Exchange Company, LLC, a subsidiary of The First American Corporation and a qualified intermediary in IRC Section 1031 tax-deferred exchanges, has announced that it is working with investors to help them capitalize on a little-known IRS rule that allows for the tax-deferred exchange of investment property.Janna Shearman, a vice president in the company’s New Orleans office, is one of the few business professionals in Louisiana to earn the Certified Exchange Specialist® (CES) designation, after meeting the examination and work-experience criteria established by the Federation of Exchange Accommodators (FEA). The FEA is a nonprofit trade organization with a nationwide network of certified professionals, including accountants, attorneys, real estate brokers and others who help investors handle the requirements of Section 1031 transactions.
Section 1031 exchanges are complex transactions that permit investors to defer capital gains taxes on the sale of certain types of business, investment or income property, provided specific criteria are met, including the replacement of the property with one or more properties of “like kind.” Investment real estate is the most common type of property exchanged in this manner, though many other types of property can be bought and sold through a 1031 exchange. Examples include construction equipment, easements, livestock, oil and gas, minerals, timber, water rights, airplanes, boats and yachts and motor vehicles, among others.
The FEA encourages taxpayers to consider using a Certified Exchange Specialist to act as a “qualified intermediary” for their 1031 exchange. “Almost anyone can claim to be a qualified intermediary,” said Shearman. “Section 1031 exchanges are complicated and highly specific, so even a small mistake could completely wipe out the potential tax benefits. The FEA’s certification program is intended to allow taxpayers to make informed decisions when selecting a qualified intermediary.”
First American Exchange Company facilitates tax-deferred forward, reverse, build-to-suit and personal property exchanges. Shearman can be reached in the company’s New Orleans office at (504) 588-9252 or jashearman@firstam.com.
More information about the company and an archive of its press releases can be found at www.firstam.com.
