Written By: 
Louis A. Tucci
​Managing Director
L. Tucci Financial LLC

CRE investors using a 1031 exchange to sell a property and defer capital gains tax as well as depreciation recapture tax are well aware of the 180-day timeline to close on a replacement property.

Assuming our investor has properly identified a replacement property within the time allotted 45 days. Following the closing of the sale of their relinquished property they are now are faced with challenges that could result in the failure to close on that replacement property within the 180-day timeline.

This could be for various reasons not limited to the inability to secure financing or issues related to the property inspection.

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CIANJ member, Louis Tucci, currently serves as the Managing Director at L. Tucci Financial LLC. Using his business experience, Louis endeavors to help others achieve their financial independence. He can be reached at 201-291-2672 or [email protected]

Disclosure:
Louis A. Tucci is a Registered Representative of Coastal Equities, Inc. and an Investment Advisory Representative of Coastal Investment Advisors, Inc. Neither Coastal Equities, Inc. nor Coastal Investment Advisors, Inc. is affiliated with L. Tucci Financial, LLC. Investment Advisory Services are offered through Coastal Investment Advisors, Inc., and securities are offered through Coastal Equities, Inc., Member FINRA/SIPC, co-located at 1201 N. Orange St., Suite 729, Wilmington, DE 19801.
​
Coastal and CoastalOne are trade names for the Coastal Companies.  The Coastal Companies are Coastal Equities, Inc. Coastal Investment Advisors, Inc. a US SEC Registered Investment Adviser and Coastal Insurance Services, which consist of several affiliated insurance agencies, co-located at 1201 N Orange St., Suite 729 Wilmington DE 19801

Written By:
Louis A. Tucci
​Managing Director
L. Tucci Financial LLC
​
In addition to fueling the recent bid ask spreads that has led to a drop in available properties, higher interest rates and tighter lending have also caused unintended complications to 1031 exchanges.

When an investor is looking at replacement properties, they must replace the sale price. Given the example if a seller sold their property for $1m with 50% LTV they must replace the $1m when they purchase the replacement property.

In the case of a seller who is considering a DST with 45% debt, they must either come up with the difference in cash or pay tax on the boot.

In the last 6 months we have seen many DST sponsor syndicate DST’s well under 50% LTV whereby a year ago we were still seeing 60% LTV.

Another observation which is becoming a trend of sorts, is sellers are having to hold a note (seller financing) because the buyer cannot secure enough debt due to tighter lending by institutions.

When a seller holds a note, it potentially could cause the entire value of note to become a taxable boot.

For sellers to have the best chance to have a successful 1031, engaging in conversation with qualified professionals prior to sitting at the closing table will only increase their chances of a positive outcome. 

CIANJ member, Louis Tucci, currently serves as the Managing Director at L. Tucci Financial LLC. Using his business experience, Louis endeavors to help others achieve their financial independence. He can be reached at 201-291-2672 or [email protected]

Disclosure:
Louis A. Tucci is a Registered Representative of Coastal Equities, Inc. and an Investment Advisory Representative of Coastal Investment Advisors, Inc. Neither Coastal Equities, Inc. nor Coastal Investment Advisors, Inc. is affiliated with L. Tucci Financial, LLC. Investment Advisory Services are offered through Coastal Investment Advisors, Inc., and securities are offered through Coastal Equities, Inc., Member FINRA/SIPC, co-located at 1201 N. Orange St., Suite 729, Wilmington, DE 19801.
​
Coastal and CoastalOne are trade names for the Coastal Companies.  The Coastal Companies are Coastal Equities, Inc. Coastal Investment Advisors, Inc. a US SEC Registered Investment Adviser and Coastal Insurance Services, which consist of several affiliated insurance agencies, co-located at 1201 N Orange St., Suite 729 Wilmington DE 19801

Written By: 
Louis A. Tucci
Managing Director
L. Tucci Financial LLC

Before we discuss the relationship of debt within a successful 1031 exchange, a quick review of the basic rules of a successful 1031 is a good place to start.

Rule #1
Must have a Qualified Intermediary prior to the closing of the relinquished property.

Rule #2
The replacement property must be “liked- kind” property. “Like-kind” refers to the character or essence of the property.

Rule #3
Replacement property must be equal to or greater than the value of the relinquished property (less closing cost related to selling the relinquished property)

Rule #4
Investors have 45 days from the date of closing to identify the replacement properties. There are 3 rules for identification; the 3-property rule, the 200% rule and the 95% rule. For more information on the identification rules you can visit my website @ www.ltuccifinancial.com.

Rule #5
180 days to close on a property or properties from your identification list.

Rule #6
Debt replacement
There is widely held misconception…

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CIANJ member, Louis Tucci, currently serves as the Managing Director at L. Tucci Financial LLC. Using his business experience, Louis endeavors to help others achieve their financial independence. He can be reached at 201-291-2672 or [email protected]

Disclosure:
Louis A. Tucci is a Registered Representative of Coastal Equities, Inc. and an Investment Advisory Representative of Coastal Investment Advisors, Inc. Neither Coastal Equities, Inc. nor Coastal Investment Advisors, Inc. is affiliated with L. Tucci Financial, LLC. Investment Advisory Services are offered through Coastal Investment Advisors, Inc., and securities are offered through Coastal Equities, Inc., Member FINRA/SIPC, co-located at 1201 N. Orange St., Suite 729, Wilmington, DE 19801.
​
Coastal and CoastalOne are trade names for the Coastal Companies.  The Coastal Companies are Coastal Equities, Inc. Coastal Investment Advisors, Inc. a US SEC Registered Investment Adviser and Coastal Insurance Services, which consist of several affiliated insurance agencies, co-located at 1201 N Orange St., Suite 729 Wilmington DE 19801

Written By:
Louis A. Tucci
Managing Director
L. Tucci Financial LLC

Before we dive into the misconception of the 180-day rule, let’s review a few IRS requirements for a successful 1031 exchange.

Understanding the Definition of “Closing”

Legally, a “closing” is a final transaction between a property buyer and the seller. This means that all agreements are finalized, and paperwork is signed and exchanged. The seller receives their money during the closing process, and the buyer receives title to the property. Once everything is signed, the transaction is both binding and irrevocable. All these requirements must be met to qualify as an official “closing” for a 1031 exchange.

45 - Day Rule & 180- Day Rule
These are critical deadlines. Both are considered hard deadlines with no exceptions or extensions. It is essential to understand the details thoroughly.

What is the 45-Day Rule?
It is the time to identify a property as a replacement without exception within 45 days or less after closing on your relinquished property or properties.

What is the 180 - Day Rule?
The 1031 exchange is governed by Section 1031 of the U.S. tax code. The code explains the steps you must take to complete the exchange.
The 180 - Rule states an investor must close on their replacement property 180 days from the day they closed on their relinquished property. The 180 days includes holidays and weekends. So, if the 180th day falls on either a weekend or Holiday you’ll need to plan accordingly. The 180 day-rule is set in stone.

Or

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CIANJ member, Louis Tucci, currently serves as the Managing Director at L. Tucci Financial LLC. Using his business experience, Louis endeavors to help others achieve their financial independence. He can be reached at 201-291-2672 or [email protected]

Disclosure:
Louis A. Tucci is a Registered Representative of Coastal Equities, Inc. and an Investment Advisory Representative of Coastal Investment Advisors, Inc. Neither Coastal Equities, Inc. nor Coastal Investment Advisors, Inc. is affiliated with L. Tucci Financial, LLC. Investment Advisory Services are offered through Coastal Investment Advisors, Inc., and securities are offered through Coastal Equities, Inc., Member FINRA/SIPC, co-located at 1201 N. Orange St., Suite 729, Wilmington, DE 19801.
​
Coastal and CoastalOne are trade names for the Coastal Companies.  The Coastal Companies are Coastal Equities, Inc. Coastal Investment Advisors, Inc. a US SEC Registered Investment Adviser and Coastal Insurance Services, which consist of several affiliated insurance agencies, co-located at 1201 N Orange St., Suite 729 Wilmington DE 19801

Written by:
David H. Nachman, Esq., Ludka Zimovcak, Esq., Snehal Batra, Esq.
and Samantha Oberstein, Esq.
Nachman, Phulwani, Zimovcak (NPZ) Law Group, P.C.

The FY 2024 H-1B Cap Season has begun, and the U.S. Citizenship and Immigration Services (USCIS) has completed the initial electronic registration selection process. Here's what you need to know about the H-1B cap, electronic registration, and petition filing.

1. Electronic Registration Selection Process Completed
USCIS has received enough electronic registrations to reach the FY 2024 H-1B numerical allocations, including the advanced degree exemption. All selected registrants have been notified, and their online accounts now show one of four possible statuses: Submitted, Selected, Denied, or Invalidated-Failed Payment. Visit the H-1B Electronic Registration Process page for more information.

2. Filing H-1B Cap Petitions from April 1
H-1B cap-subject petitions for FY 2024, including those eligible for the advanced degree exemption, may be filed with USCIS starting April 1, 2023. Only petitioners with selected registrations can file petitions for FY 2024 and must do so within the filing period indicated on the registration selection notice. Online filing is not available, and petitioners must include a printed copy of the registration selection notice with the petition. Visit the H-1B Cap Season page for more details.

3. Pre-paid Mailer Suspension
USCIS will not use prepaid mailers to send out any communication or final notices for FY 2024 cap-subject H-1B petitions, including those requesting consideration under the advanced degree exemption. Instead, first-class mail will be used as it is more efficient for both petitioners and USCIS.

4. Receipt Notice Delays
Due to increased filing volumes, there may be delays in the issuance of Form I-797, Notice of Action. Petitioners should not submit a second petition if they have confirmation from the delivery service that the petition was delivered. Submitting duplicate petitions may result in denial or revocation of both petitions. If more than 30 days have passed since the delivery confirmation and no Form I-797 has been received, contact the USCIS Contact Center for assistance.

Stay updated and informed about the FY 2024 H-1B Cap Season by visiting the USCIS website regularly and following the guidelines provided.

If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please don't hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by sending an email to [email protected] or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information.

Written by: David H. Nachman, Esq., Ludka Zimovcak, Esq., Snehal Batra, Esq.
and Samantha Oberstein, Esq.
Nachman, Phulwani, Zimovcak (NPZ) Law Group, P.C.
​
As we move forward from the COVID-19 pandemic, the USCIS approach to immigration compliance is rapidly evolving, and employers must stay up to date to avoid costly government inspections. One area of concern is the Form I-9, which verifies employment eligibility and is subject to new and potential changes.

Here are the top three things you need to know about I-9 compliance:

Firstly, the Department of Homeland Security has proposed a rule that would allow alternative options for remote employee verification, including email, fax, video, chat applications, and other electronic means. While the current COVID-19 flexibilities allow remote verification until July 2023, this proposal could create a permanent protocol for remote document review. Employers will need to adjust their procedures, such as updating forms and expanding training, to ensure compliance.

Secondly, a new, revised version of the Form I-9 is expected this year, with proposed changes including a single-page format, streamlined instructions, and technical updates. Employers must be prepared to implement these changes.

Finally, increased fines and penalties for I-9 errors are already in practice, and the cost of non-compliance can be enormous. Estimates suggest that 50% to 75% of employers have I-9 errors, which can result in substantial fines and time-consuming NIF processes. Employers must perform self-audits and work with knowledgeable attorneys to ensure compliance and avoid hefty fines.

In conclusion, employers must stay up to date with new and potential changes to I-9 compliance to avoid costly fines and government inspections. Compliance can be confusing, but self-audits and expert guidance can help employers navigate this complex area successfully.

If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please don't hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by sending an email to [email protected] or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information.