“If you plan ahead and are patient, you will be able to accomplish your goals in the light of day and sleep at night.” –Richard T. Morse
Washington Exchange Services, Inc. was formed and incorporated in 1994 by its President, Richard T. Morse. When Washington Exchange Services, Inc. commenced doing business, it was one of the first companies formed in Washington State for the purpose of acting as a qualified intermediary, aka, facilitator, on behalf of individuals, partnerships, trusts, corporations, and limited liability companies who wished to engage in a real and/or personal property tax deferred exchange. Tax deferred exchanges are sometimes also referred to as ‘like-kind exchanges’.
In 1978 he graduated, magna cum laude, from Seattle University. Thereafter in 1981, Richard graduated from the University of San Francisco’s School of Law. In 1982 he was admitted to practice of law in Washington State, the United States District of Court for the Western District of Washington, and the Ninth Circuit Court of Appeals. Richard is a member of the Washington State Bar’s real property, trust and probate Section.
Mr. Morse has taught numerous continuing education classes concerning tax deferred exchanges and a variety of other topics for Washington State attorneys, real estate agents, as well as informal seminars for the benefit of the general public.
It is both important and very useful for those who may be considering whether to engage in a tax deferred exchange to know that there are a number of different ways to structure an exchange. Depending upon our client’s unique goals and circumstances Washington Exchange Services, Inc. is capable of acting either as a client’s Qualified Intermediary, ‘QI’, or in instances of a reverse exchange, as a client’s Exchange Accommodation Titleholder, ‘EAT’.
For an asset, either real and or personal property, that is going to be sold to qualify for purposes of an IRC Section 1031 tax deferred exchange, the asset(s) must have been held for productive use in a trade, business, or for investment purposes by the taxpayer. There are different ‘types’ of exchanges: simultaneous, delayed, reverse, construction, or multi-asset; nevertheless, all exchanges share the same requirement that the real or personal property in question must have been held by the taxpayer for the purposes described above. In the simplest terms the so called ‘different’ types of exchanges listed above differ as to the timing of when title to the relinquished property is conveyed and title to the replacement property is received.
Regardless of the ‘type’ of exchange structure being used, the desired result will be the same namely the deferral of the duty to pay federal and in most instances any state capital gains tax.
For the past 20 years, taxpayers throughout the United States have sought the assistance and guidance provided by Washington Exchange Services, Inc., together with the advice they received from their real estate agents, attorneys, accountants, and financial advisers to structure their tax deferred exchange in the manner that is best suited to serve their goals.