In the face of reduced exchange volumes, proposed federal regulation and financial troubles with certain accommodator companies, the 1031 accommodator industry is confronted with turbulent times.  That is what made this April's Federation of Exchange Accommodators Mid-Year Conference in Washington DC such an important event.  From the depth of topics covered at the mid-year conference, it is clear that the solidarity and determination of the FEA organization will guide the industry through these difficult and uncertain times.  This article will cover some of the highlights of the Mid-Year Conference including the FEA and Legislative Update, the Real Estate Economic Forecast, Structured Sales, Exchange of Contract Rights, Managing Personal Property Exchanges and Malpractice and Potential Damages for a Failed Exchange.

Another topic of interest in the industry discussed by Mr. Pollard is the proposed IRC 468(B) regulation, which would ultimately affect any QI who receives marketing fees, earnings credits, and interest from financial institutions.  Mr. Pollard pointed out that the IRS has completed the revised Initial Regulatory Flexibility Act Study to determine the impact of the proposed regulations on small business.  The FEA has taken the position that the proposed regulations will have a devastating effect on small businesses, to the extent that many QIs, of all sizes, risk going out of business.  Mr. Pollard notes "We are a bit disappointed in the result, and will file a formal response by May 4^th.  The good news is that there appears to be a willingness to discuss the substantive issues, such as de minimis rules (duration of exchange; size of exchange) and setting the appropriate test interest rate".