Final regulations on section 1.468B-6 trusts.

On this weeks Tax Talk, the weekly podcast feature of The Tax Law Channel, I am joined once again by Mark Wahlstrom, the host of The Settlement Channel and one of the nations leading experts on structured sales as they relate to real estate sales and section 1031 exchanges using structured sales as a fall back.  The reason for having Mark back two weeks in a row is the news that the Treasury has issued final regulations on section 468B-6 trusts and I wanted to get copies and material to my audience as soon as possible.

Now, before anyone gets too excited, these regulations and final rules are NOT related to the more commonly discussed 468B trust that is used for litigation and mass torts. These rules are not related to those trusts or the pending issue before Treasury regarding the taxation of single claimant structures, as much as we would like to get that ruling after all these years of waiting.

No, this podcast is relative to the section of those trusts that govern a variety of other trusts, but specifically those related to section 1031 exchanges and the trust accounts used to manage those transactions. Now, before you go away and don't read this, keep in mind that Allstate Life has their structured sale product, which is a vital element of the 1031 fall back or fall out market so knowledge of these provisions is of keen interest if you are involved in that market. There is a huge knowledge gap in both the real estate and structured settlement community on how useful this product is in resolving issues surrounding the failure of a 1031 exchange when the clients still want tax deferral.

I know it's a small niche as of yet, but a lot more producers should be looking at the 1031 fallback or fall out market as a means of getting into the structured sales arena. So take a few minutes, click on this link, and learn a little more about 468B-6 trusts and the new rules on section 1031 exchanges. 

You can also read more on these regulations and obtain a copy of this ruling by going over to The Tax Law Channel and looking for the pdf copy of the regulations.

Finally you can view the final regulations and rules by clicking here.