Landamerica 1031 exchange services inc liquidating trust
The IRS has not yet issued any guidance on whether it will extend the time limits.If you are under contract to sell property to a buyer that is intending to use like-kind exchange proceeds held by the Exchange Company, there is a possibility that the buyer will not be able to use those proceeds and close escrow when planned.
At the height of the last economic cycle, real estate and other business transactions closed at a rapid clip, spurring investors to seek out creative ways to shelter their profits from capital gain taxes.Land Americas two most prominent underwriting subsidiaries are Commonwealth Land Title Insurance Company (Commonwealth) and Lawyers Title Insurance Company (Lawyers Title).These recent events may affect Commonwealth and Lawyers Title policyholders, in addition to stakeholders of escrow and other accounts held by these companies.Law360, Los Angeles (July 5, 2012, PM EDT) -- A California federal judge on Thursday preliminarily approved an $11 million class settlement of claims that Commonwealth Land Title Co. White signed off on the deal Thursday, a move that will help trigger an additional $36.8 million payment to the 383 class members in a related bankruptcy settlement, according to court filings. Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.and others defrauded nearly 400 investors by helping now-bankrupt Land America Financial Group Inc. and Commonwealth Land Title Insurance Co., to Fidelity National Title Insurance Co. It appears that Land America 1031 Exchange Services Company, Inc. The Exchange Company cited a downturn in the real estate market, as well as illiquid investments in auction rate securities, as reasons for its bankruptcy filing. If the Exchange Company holds your sales proceeds as a qualified intermediary in an open deferred like-kind transaction, you may not be able to use the proceeds for some time, and you may ultimately receive less than the full amount of your proceeds.
However, if your proceeds are held in a segregated account, you may be able to obtain the proceeds sooner.
In a forward deferred exchange, "relinquished" property is sold and "replacement" property is subsequently purchased.
A qualified third-party intermediary holds the proceeds from the sale of the relinquished property pending purchase of the replacement property.
One tool often employed for this purpose was §1031 of the Internal Revenue Code.
Section 1031 permits the deferral of gain recognition upon the sale of investment or business property if the proceeds are reinvested in similar property as part of a qualifying like-kind exchange.
Flaxer has devoted his career to business bankruptcy practice, successfully representing bondholders, chapter 11 debtors and trustees, creditors’ committees, distressed debt investors, distressed asset acquirers, indenture trustees, and landlords. Flaxer has also led numerous successful out-of-court workouts.