Banking & Finance: 1031 exchange cause of LandAmerica meltdown

This article is interesting and surprising. I have always held the belief that commingling funds by a fiduciary was prima facie evidence of fraud.

While 1031 users may get hit with a tax bill, they will probably have an offsetting loss from the bankruptcy. Will Congress deal with this?

Dick

Free registration 'required'? Gawd, sounds like a link to a certain (formerly) major city newspaper now on the brink of bankruptcy. Just THINK of the tax implications of that.

ChEAr$, Harlan Lunsford, EA n LA

anyone care to summarize what is going on? I have enough "free registrations" as it is.

Gil Faver

Thanks, I assumed it was something along those lines. After reading about one such incident around here, I came to the conclusion that you should only use a big, major bank as a QI since they would have the wherewithal to provide your funds even if they lost them somehow. Now, I don't think this is good advice either . . .