Until recently, it has been unclear whether IRC Section 1031 applies to the “exchange” of vacation homes. In the absence of binding guidance, taxpayers often referred to a 1981 Private Letter Ruling (PLR) that seemed to indicate exchange treatment was available where the taxpayer had acquired both the relinquished property and replacement property in hopes of future appreciation.
The trouble began in 2007. The 1031 Tax Group LLC, a privately-held qualified intermediary based in Richmond, VA, filed for bankruptcy protection. Edward H. Okun is owner and sole “member” of the company. Additionally, 16 other subsidiary firms (in San Jose, Boston, Denver, San Antonio, Tampa and New York), each designated as qualified intermediaries, also sought bankruptcy protection in the filing.
Delaware was the first state to pioneer many innovative trust laws, but the competition for trusts is fierce among the states. Wilmington Trust’s National Director, Delaware Trust Planning Jeff Wolken, sits down with Editor in Chief of Trusts & Estates magazine, Susan Lipp, at the 54th Annual Heckerling Institute on Estate Planning to share his insights on how Delaware sets itself apart from other states.Please see important disclosures at the end of the video.