Audits, Audits, and More Audits!
Throughout 2018, New York State Department of Taxation and Finance has been very aggressive in pursuing revenue from defective IRC Section 1031 tax-deferred property exchanges. New York Deferred Corp. (NYDEC) is currently involved in protecting several exchange client’s interests through active, direct communication with State auditors when necessary. NYDEC maintains a 100% success rate at ensuring properly structured exchanges through our renowned and proprietary Comprehensive Service Exchange program.
Selecting a Qualified Intermediary (QI) may seem like an insignificant decision. It’s not.
Finding a 1031 NYC Qualified Intermediary
In IRC Section 1031 parlance, “qualified” does not denote “competence”. The regulations state any party related to the property exchanger is ineligible, or “disqualfied”, to act as intermediary (or exchange accommodator). Correspondingly, unrelated parties are therefore deemed “qualified”.
There are a number of truly competent 1031 companies in New York, but it is important to research the history, background, and reputation of a QI, while structuring a property exchange. New York Deferred Exchange Corp. was the first qualified intermediary to establish a practice in New York (1991). With offices in New York City and Nassau County, NYDEC has administered thousands of property exchanges in the five boroughs and surrounding counties, as well as maintaining clients throughout the United States. The large (and growing) number of 5-star Google reviews attest to our unparalleled reputation in the field.
DST a “replacement property” alternative
Many of our clients run into a problem after selling their property. What to buy? For a variety of reasons a Delaware Statutory Trust (DST) can be a great solution. Here’s why:
1) No more hassles from managing real estate
2) Diversification of your portfolio
3) Replace mortgage without qualification (to avoid mortgage “boot”
4) Improved yield
It is important to engage a qualified professional to guide you through the selection process and clearly answer questions. Although each exchanger has to chose for themselves, NYDEC has found Fortitude Investment Group (www.1031DST.com) to be an excellent resource for over 10 years. Many exchangers have expressed appreciation for the services they offer led by Managing Partner, Dan Raupp.