Worst month of job losses since last December

Don't worry, aboutready's husband will save us, he's hiring at his firm.

I've been barking about this time period's impending job doom for a while.
Layoffs before christmas bonuses are a staple in any economic times.
Next on the list to be wary of is post christmas bankruptcy filings.
This coming Jan/Feb may get quite ugly.

And with impending commercial RE issues to be at the front of the aisle, yikes I just thought of something else, what happens if 1031 exchange intermediaries start filing chapter 11?
What a mess that would be...you have 6 months to identify and close on the new property. What kind of red tape would a bankruptcy provide? Maybe you can't close, then you owe all those taxes.
I guess there must be insurance for that.

1031 are bk remote structures. They have no liabilities.

Well 1031s are relatively new. I did one in it's first or second year of acceptance.
It was quite frankly, a pain in the ass.
And it has enjoyed a 10/12 year run of nothing but good times. Not tested by any real catastrophe.
Today's climate, coupled with state and federal short on revenues scenarios could be a loophole nightmare for some smaller commercial RE dabblers.

1031 Exchanges have been around since the code provision was enacted in 1925. The current safe harbor provisions came from an IRS ruling in the late 70's call the Starker case. 1031 intermediaries are not bankrupcty remote structures; witness the LandAmerica implosion this time last year due to their dabbling in the auction rate secuirties and Lehman commercial paper markets. 1031s were tested as recently as the '88 to '94 real estate crash and a lot of people recorded catastrophic tax liabilties when the deals blew up and uncle sam claimed re-capature on the deferred capital gains together with capital gains in the amount of the unpaid loan balance. Not pretty. Best advice, make sure your tenant is creitworthy or be prepared to operate the property yourself.

Maybe I am talking about something more specialized?
Because something definitely changed around the time I did my first one that started a whole wave of seminars on 1031 exchanges and reverse exchanges.
It may have been a ruling or interpretation on the code that changed things.
I am taking about tax deferred gains on purchases of like kind commercial properties.
I'm not quite sure where your comments on tenants comes into this.

Ok I answered my own question, it is reverse exchanges that were "new."

Reverse Starkers have been done since the late 80's essentially you purchase the replacement property prior to selling the exchange property. It has the benefit of not putting the exchangor in a position of hunting around for a property with a time deadline. Tenant bankruptcies are an issue in net leased single tenant properties which a flogged by brokers as ideal exchange properties. Another casualty of the latest real estate downturn are TICs which I will not go into here.

bueler? bueler?

(crickets from steveF)