November 2006

This issue sponsored by
Exchange Solutions, Inc.

A LETTER FROM THE FEA PRESIDENT

Now that we have all recovered from a successful Annual Conference it is time to consider what the coming year will bring.

First, though, I would like to take a moment to thank David Gorenberg and Teresa Story-Turner for their efforts as Co-Chairs of the Annual Conference.  Thanks also to Katie Gifford and the staff at Fernley & Fernley.

Special thanks to Dennis Helmick for his leadership in the past year, especially with regard to the proposed regulations under §468B and §7872.  I am confident I can fill his waistline, but it will take a lot of work to fill his shoes.

During my tenure on the FEA Board of Directors I have seen the FEA grow in size, in service to its members and in national prominence.  With your help and dedication we will strive to continue that growth in 2007.

• Size – We currently have 312 regular members and 51 affiliate members conducting exchange related business from nearly 600 locations nationwide.  Almost 500 people attended the annual conference.  Impressive numbers, but we can improve on that with your help.  Do you know a QI in your area who is not a member?  They are benefiting from our lobbying efforts and missing out on the advantages of membership.  Let them know what the FEA has done for you, and for them, then ask them to join.  Is your depository bank an FEA affiliate member?  If not, ask them why not, and to support your business by joining up.

• Service – Our educational programs are second to none.  The Certified Exchange Specialist® program has elevated standards within our industry, for the benefit of the public and our profession.  Our lobbying efforts continue to shape the regulatory framework to protect the integrity of §1031 and the important role of the QI.  We rely on our committees to help deliver services to our members.  I urge you to join a committee and get involved.  I have no doubt that you will get back much more than you receive.

• National Prominence – The circumstances regarding 468B have brought a great deal of attention to our industry.   We did not ask for this attention, but since it has been thrust upon us we must use it to our advantage.  Our message is important:  The QI provides a valuable service, both to taxpayers and the IRS.  Tax-deferred exchanges keep investment capital moving through the economy and help create wealth.  The QI is an integral part of the process, guiding the taxpayer and promoting compliance with the IRS Regulations.

      The proposed regulations will have a substantial impact on our industry.  A successful resolution requires a united effort from all of us.  We also anticipate increased activity at the state level.  Many of our members have already stepped up, with monetary contributions, letters, attendance at hearings, and more.  To those have contributed, thank you, and please keep it up because the battle is not yet won.  If you have not yet contributed, why not?  The adage that we must all hang together or we will surely hang alone has never been truer.  This is not the time to stand on the sidelines.

This is an exciting time to be in the exchange industry.  I am honored to serve as the FEA President and look forward to meeting and working with you in the coming year.

Hugh Pollard, CES®
First American Exchange Company

CONGRATULATIONS TO NEW CES® DESIGNEES!

The Certification Council would like to commend all recent candidates for their commitment to the Certified Exchange Specialist® Program and the growth and professionalism of the QI industry. Congratulations to the following professionals who have been awarded the CES® designation.

MARK YOUR CALENDARS! 2007 REGIONAL MEETINGS COMING UP!

The following is the schedule for the 2007 Regional Meetings. As soon as more details are available for the meetings they will be posted on the FEA website under the Calendar of Events.

Is Your Q.I. Compromising Your Exchange?
Submitted by this Newsletter’s Sponsor, Exchange Solutions, Inc.
By: Diane Schaeffer, CES® and President of Exchange Solutions, Inc.

This article is intended for all taxpayers, attorneys and certified public accounts that recommend and use qualified intermediaries for IRC Section 1031.  I advise you to use and recommend only 1031 Accommodators who are Certified Exchange Specialists™ and/or are affiliated with the Federation of Exchange Accommodators.  The FEA is a national trade organization which sets industry standards, promotes ethical conduct and educates Q.I.’s and the general public…

To read the rest of the article, click here.

MEMBERS IN THE NEWS

Kate Gallivan, Senior Vice President at J.P. Morgan Property Exchange Inc. was quoted in the November 2006 issue of U.S. Banker. To read a copy of the article, click below:

http://www.us-banker.com/article.html?id=20061027MAVJYYFR

HERE’S HOW YOU CAN SUBMIT NEWS TO THE EXCHANGE

Do you have any exciting news about your company and/or employees or do you have suggestions for topics to be covered? Please use this form to provide FEA with that information and we would be happy to include that information in a future issue of The Exchange.