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Christine Ziomek
chris@caryl.com
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Feb. 14, 2012

Lee David Medinets, Esq. Presents §1031 Exchange Seminar To Arizona Bar Association

Top Executive at MCRES and Leading Expert on §1031 Exchanges, Medinets to Follow Up with Seminars at Other State and City Bar Associations

PHOENIX, AZ/LAKEWOOD, N.J., Feb. 14, 2012 – Lee David Medinets, Esq., a top executive at Madison Commercial Real Estate Services (MCRES) recently presented a live seminar to the Arizona Bar Association at the Daniel McAuliffe CLE Center in Phoenix. The seminar was entitled “Advanced IRC 1031 Like-Kind Exchanges: Avoiding Disasters and Capitalizing on Them.”

Medinets is General Counsel for all the affiliates of MCRES and is also Senior Counsel for the MCRES affiliate Madison §1031, where he is responsible for all legal matters related to §1031 exchange transactions. He is a Certified Exchange Specialist and is recognized as one of the nation’s leading authorities on §1031 Exchanges.

§1031 Exchanges are an invaluable tax strategy for those buying and selling real estate. When investment property is sold, investors must generally pay capital gains taxes on any profits. However, the Internal Revenue Code (IRC) Section 1031 provides investors another option—the §1031 Exchange. By exchanging one property for another, capital gain taxes can be deferred, potentially indefinitely, leaving greater net profits for reinvestment.

§1031 Exchanges also allow investors to shift an investment from one geographic region to another, trade older properties for newer ones to avoid deferred maintenance expenses, diversify a real estate portfolio, and improve cash flow. “Real estate, tax and legal advisors must ensure that their clients’ §1031 exchanges meet complex IRS requirements to successfully reap the tax benefits,” said Medinets. He will be conducting similar seminars throughout 2012, with upcoming events planned for the St. Louis Bar Association and the South Carolina Bar Association.

Medinets Provides Strategies for Coping with Serious §1031 Issues
Medinets’ seminar was targeted to real estate, tax and transactional attorneys with a general understanding of the theory and mechanics of like-kind exchanges. He addressed strategies for coping with a variety of the most serious IRC §1031 issues, including:

  • Natural and Manmade Disasters
    • How clients can benefit from certain types of nationally declared disasters
    • Choosing between §1031 and §1033 options when property is condemned or destroyed
  • Capitalizing on Financial Disaster
    • Using §108 and §1031 to avoid tax on phantom income when debt is forgiven on properties that are underwater
  • Minimizing Potential Disaster when Business Entities are Transformed
    • Theory and practice of “Drop and Swap” and related strategies
    • How to avoid tax recognition on corporate distributions
  • What Attorneys need to know about §1031 tax accounting
    • IRS forms 1099-S, 1065 and 8824
    • Depreciation options for replacement property
    • Cost segregation and §1031
    • Avoiding unintended boot
    • Special rules for parking arrangements
  • Related Parties: Major Potential for Disaster
  • Safe Handling of Funds
    • Constructive receipt
    • Protecting the security of a client’s money

Madison §1031, based in Lakewood, N.J., is one of the nation's leading Qualified Intermediaries processing all types of §1031 Exchanges. Under the leadership of senior legal counsel Lee David Medinets, Madison §1031 is known for its up-to-the-minute expertise in tax code regulations and for ensuring that all of its §1031 Exchanges meet IRC guidelines.

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