Asset Protection Planning January 15th, 2005

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Asset Protection PlanningJanuary 15th, 2005 US
Finance Group LLCFramingham, MA

• Gregory V. Janian Esq.
• Governo Law Firm
• 260 Franklin Street
• Boston, MA

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Presentation Overview

• Basics of Asset Protection
• Holding title to the Property
• Taking advantage of tax regulations 1031
  Exchanges
• Questions and Answers

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Basics of Asset Protection

• What assets am I protecting?
• Separation of assets
• Other Principles
• Insurance
• Homesteads
• Landlord Tenant Law

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Holding Title to Property

• Trusts
• Corporations
• C - Corp vs. S Corp
• LLCs
• Liability and Tax Consequences

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Trusts

• Extremely Common
• Privacy
• Popular Misconception
• No Liability Protection
• When Recommended

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Corporations

• C Corps and S Corps
• Liability Protection
• Tax Implications

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LLCs

• History
• Full Liability Protection
• Tax Benefits
• Pass-through Entity
• Single Members
• Delaware Series LLCs

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1031 Exchanges

• What is it?
• Like-kind exchange (qualifying)
• What is Boot?
• How to avoid it?
• Qualified intermediaries

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Types of Exchanges

• Simultaneous Exchange
• Delayed Exchange
• 45 day clock
• 180 day clock
• Reverse Exchange
• Improvement Exchange

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Delayed Exchanges

• PS Signed Normally
• Accommodation Language
• Exchange Agreement with Intermediary
• (Substitute Seller)
• 45 Day Rule for Identification
• (in writing)
• 180 Day Rule
• (no extensions)

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Reverse Exchanges

• Safe-Harbor Guidelines
• Used for improvements to property
• 5 Day Rule
• 45 Day Rule
• 180 Day Rule

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1031 Continued

• Improvement Exchanges
• Disadvantages

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• Questions?