Certified Exchange Specialist® and 1031 Exchange
Posted by Andy Gustafson on Thu, Aug 05, 2010
What is a Certified Exchange Specialist (CES) and why is it important in a 1031 exchange? In 2003, the Federation of Exchange Accommodators (FEA) established the Certified Exchange Specialist® designation, creating a board level exam and yearly continuing education requirements for accommodators with a prerequisite of three years of 1031 consultation experience.
Federation of Exchange Accommodators
The FEA is a national association of over one hundred large and small companies that provide 1031 tax deferral services. The FEA lobbies state and federal legislatures providing insight and direction to craft legislation aimed at protecting the consumer. There are currently two hundred accommodators with the CES designation nationwide. The designation was created to provide a consistent level of expertise and Code of Ethics that distinguishes designees as experienced, knowledgeable and current on 1031 exchange procedures.
Engaging a Certified Exchange Specialist® provides assurance of working with an individual who specializes in 1031 exchanges. There are many companies owned by attorneys, CPAs, and title/escrow companies that provide 1031 services. They are typically not dedicated full time to 1031 exchanges. Consequently, they are not familiar with or current on Internal Revenue Service Revenue Procedures, Private Letter Rulings and Technical Advice Memorandums. Nor do they adhere to the CES’s Code of Ethics.
If your heart requires surgery, would you have a general physician complete the work or would you engage a cardiologist? 1031 exchanges are a specialty, complex and riddled with IRS rules. Seek the Certified Exchange Specialist on staff logo on web sites of those accommodators you are considering and ask good questions.
