The California Title Holding Trust  

The Title Holding Trust, often referred to as a land trust, holding trust or blind trust, is a simple and inexpensive method for holding title to California real estate. The Title Holding Trust is a fully revocable grantor trust (living trust) written exclusively to buy, hold and sell California real property or personal property. 

Confidential Ownership of Real Property  

The real estate or personal property can be bought and held inside the Title Holding Trust on a confidential or private basis.  The beneficiary (owner) of the trust is not disclosed or listed on any public record.  The trustee of the trust acquires and holds title to the real estate or personal property in its name. 

Reasons to Use the Title Holding Trust in California 

There are many reasons that you would consider using the Title Holding Trust to buy and hold title to real estate or personal property. The primary reason is the ability to buy real estate or personal property in a confidential or private manner in order to keep the real estate investor's name off of the public records.

Trustee of the Title Holding Trust  

Exeter Fiduciary Services, LLC, serves as the trustee for the Title Holding Trust and buys and holds legal and equitable title to the real estate or personal property pursuant to the terms of an unrecorded Title Holding Trust Agreement.  Exeter can not act with out the express written consent of the beneficiary or owner of the trust.

Intermediate Level 1031 Exchange Workshop

This is an intermediate level workshop on forward, reverse and improvement (build-to-suit or construction) 1031 exchange transactions pursuant to Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations.

1031 Exchange Workshop Content

The educational workshop will begin with an introduction to various tax-deferral and tax-exclusion strategies, including combining Section 1031 with Section 121.  The discussions will focus on the requirements, structures, processes, strategies, and compliance issues necessary to successfully complete a 1031 exchange transaction.  We will finish with an explanation of the new fractional ownership opportunities of tenant-in-common property interests (TIC or CORE Interests) used as like-kind replacement property solutions pursuant to Revenue Procedure 2002-22.

Click here for more complete information and to RSVP (required).

A Guide to 1031 Exchanges was written and produced by Exeter 1031 Exchange Services to help the real estate investor understand the many options available when considering 1031 exchange strategies for deferring taxes on the sale of investment real estate.  Download A Guide to 1031 Exchanges.

Do you buy real estate and rent the real property to tenants?  You do?  Well, this means that you are a real estate investor then, and you are also subject to capital gain and depreciation recapture income taxes when you ultimately sell your rental property.  That is, unless you defer the payment of your taxes. 

You can defer the payment of your capital gain and depreciation recapture income taxes by using the tax-deferred exchange where you sell your rental property and then buy another rental property so that you can defer the payment of your income taxes. 

This tax-deferred exchange allows you to "trade up" in value by selling a smaller rental property like a single family home and buying a larger rental property like a duplex or four plex with out paying any taxes. 

You should visit The 1031 Exchange Institute for more information on tax-deferred exchanges.  They have a lot of free resources, including a free forum and blog on tax-deferred exchanges and tenant-in-common investment properties. 

There is a ton of technical stuff on the Internet today about 1031 exchanges.  The tough part is knowing who to turn to for good quality advice on 1031 exchanges. 

IRS Created Gray Areas

There are many, many gray areas within the 1031 exchange process.  The different IRS laws, regulations, and rulings have made the 1031 exchange much more difficult and have created so many questions that the 1031 exchange industry experts must interpret them for the rest of us. 

This is why there are so many different 1031 exchange opinions that seem to disagree with each other.  Unfortunately, the gray areas will be with us until the IRS or courts help clear things up.

1031 Exchange Resource Manual

We decided that a 1031 exchange reference book was needed that would talk about the gray areas and help explain the 1031 exchange problems involved to the average taxpayer.  We did not want to provide taxpayers with more of "our opinions" or "our answers," but we did want to talk about all of the sides to the 1031 exchange problem so that taxpayers can make better real estate investment decision. 

So, the 1031 exchange resource manual was born. 

President George W. Bush signed House of Representatives Bill 4520 also known as the American Jobs Creation Act of 2004 (H.R. 4520) into law on October 22, 2004.  H.R. 4520 addresses real estate transactions where a taxpayer has combined a 1031 tax deferred exchange ("1031 exchange") under Section 1031 of the Internal Revenue Code with a 121 tax-free exclusion ("121 exclusion") under Section 121 of the Internal Revenue Code.

Five Year Ownership Now Requirement

H.R. 4520 created a new five (5) year ownership or holding requirement for a taxpayer who wants to exclude capital gains from his or her taxable income pursuant to a 121 exclusion from the sale of his or her primary home or residence that was originally bought as rental property as part of a previous 1031 exchange.

Not To Be Confused With A Standard 1031 Exchange

Taxpayers should note that this new ownership requirement only applies only to real estate that was originally purchased as part of a 1031 exchange and then subsequently converted into his or her primary residence. It does not apply to real property that was not acquired through a prior 1031 exchange or to real estate that has always been held as the taxpayers primary residence.

You can learn more about this tax plannning strategy at: http://www.exeter1031.com/five_year_holding_per iod.aspx" title="http://www.exeter1031.com/five_year_holding_per iod.aspx" target="_blank"http://www.exeter1031.com/fiv....

The Private Annuity Trust met its death in 2006.  The issue of whether the Private Annuity Trust or PAT would qualify for tax-deferred treatment under Section 453 had been discussed and debated by industry experts for many years. There were many practitioners that offered them, but there were many more that did not because of the concern that the Private Annuity Trust might be disallowed by the IRS. 

Questions About Validity

There were lots of questions.  Would the Private Annuity Trust qualify for tax-deferred treatment or would the tax-deferred transaction be disallowed?  Would the structure hold up under an IRS or state revenue audit?  Industry experts were not sure what the IRS's opinion would be, until last year.

IRS Rules Against PATs 

The Internal Revenue Service effectively terminated or disallowed the Private Annuity Trust or PAT as an option to defer income taxes from the sale of highly appreciated real estate by issuing temporary regulations on October 17, 2006 addressing what they considered to be abuses or inappropriate application of the Private Annuity Trust or PAT. 

Still Viable Application For Estate Planning

The Private Annuity Trust can still be a good strategic move for estate planning purposes.  It essentially pulls the assets outside of your estate in order to reduce the value of your estate upon death. 

News Release  

You can review a complete newsrelease and the actual temporary regulations at: http://www.exeter1031.com/news_proposed_regulat ions_private_annuity_trus ts.aspx" title="http://www.exeter1031.com/news_proposed_regulat ions_private_annuity_trus ts.aspx" target="_blank"http://www.exeter1031.com/new...

1031 Exchange and TIC Investment Property Seminar in Bakersfield, California

We are rolling out a 1031 exchange and TIC investment property seminar on Thursday, June 12, 2008 in Bakersfield, California from 6:30 PM to 9:00 PM. 

Speaker

You can learn the basics of 1031 exchanges from Steve Monk, vice president and regional manager, EXETER 1031 Exchange Services, LLC.  There will also be a registered securities representative presenting 1031 TIC investment properties and more.

Dinner Provided

Dinner will be served.  Attendees must be accredited investors.  RSVPs are required. 

1031 Exchange and 1031 TIC Investment Class in Fresno, California

We are rolling out a 1031 exchange and 1031 TIC investment property seminar on Friday, June 13, 2008 in Fresno, California from 11:30 AM to 2:00 PM. 

Speaker

You can learn the basics of 1031 exchanges from Steve Monk, vice president and regional manager, EXETER 1031 Exchange Services, LLC.  There will also be a registered securities representative presenting 1031 TIC investment properties and more.

Lunch Provided

Lunch will be served.  Attendees must be accredited investors.  RSVPs are required. 

Are You Aware Of The 1031 Exchange?  

Do you know about the tax-deferred benefits of the 1031 Exchange?  If not, you should.  You are paying way too much in taxes to the Federal and state governments when you sell your rental properties if you are not taking advantage of the 1031 exchange, unless you intend to cash our and get out of investment real estate completely. 

Introducing The 1031 Exchange

The 1031 exchange allows you to sell your real estate rentals and defer the payment of your capital gains by buying another like-kind rental property.  You have to buy other rentals that are worth more than what you sold and you have to reinvest all your cash if you want to defer all of your taxes. 

Keep Your Equity Working For You

The 1031 Exchange is a great way to keep you equity working for you.  You can build your net worth much faster by deferring the payment of any tax, and the 1031 exchange is a tremendous tool for just that.