Meet Scott R. Saunders, Senior Vice President at Asset Preservation, Inc. (API), a subsidiary of Stewart Information Services Corporation (NYSE: STC). With over 35 years of experience in IRC 1031 tax deferred exchanges, Scott has played a key role in structuring numerous exchanges. He’s a former President and Board member of the Federation of Exchange Accommodators (1031.org) and holds a Business Economics degree from the University of California at Santa Barbara (UCSB). Scott is also a real estate instructor and investor with over 60 properties in 9 states. A sought-after speaker, Scott presents classes and podcasts on advanced 1031 exchange strategies and tax strategies nationwide. He has spoken at prestigious conferences and events including the National Association of Realtors® Annual Conference and The Wall Street Journal. Additionally, Scott is a contributing author to real estate books and has written over 200 articles on 1031 exchanges, capital gain taxation, and investment real estate. As a member of the Real Estate Roundtable and the FEA Government Affairs Committee, Scott advocates for pro-business and investor-friendly tax policies. He brings unparalleled expertise and advocacy to the real estate industry, shaping discussions and policies at the national level.
Episode Highlights Here:
Scott So 1031, when you look at it broadly really applies to any real property held for investment or used in a business. And so sometimes people just kind of think of I gotta go from commercial to commercial, not realizing you’ve got all these other types of things that are considered real property that qualify. Brett What would you say the number one secret is to understanding some of the issues today with 1031 exchange in today’s market? Scott You know, one that I think is overlooked, is just how broad a 1031 exchange is, you know, you’re certainly familiar with the Delaware statutory trust or what I call fractional ownership, a growing niche, but one thing that people overlook is you can exchange any type of real property. And that’s so broad right? We have people that do exchanges on air rights, what is known as a transferable development rights. So if I’m in New York City, and I got the right to add five storeys to my building, that is literally an air right and I can exchange out of that into an apartment complex. We do exchanges. In many states, particularly the drier Western states on water rights, which are considered real property. We do exchanges on easements of all different types a conservation easement qualifies, an agricultural easement can qualify and one is called a perpetual communications easement. Little bit of a mouthful. Just think of it in English as a cell tower. If you’ve got a cell tower that you created, perpetual communication has been you can keep your land and exchange out of that cell tower. If it’s on a commercial building, you keep your building and exchange out of the cell tower. We do exchanges into energy, we do exchanges into certain oil, gas and mineral rights are out of it. So 1031, when you look at it broadly, really applies to any real property held for investment or used in a business. And so sometimes people just kind of think of I gotta go from commercial to commercial, not realizing you’ve got all these other types of things that are considered real property that qualify, you know, and I know you’re an expert on Delaware statutory trust, where people either go into that as their entire replacement property, or we see a lot of people that maybe have a little leftover, they do an exchange out of a million dollar asset. They’ve got 200,000 That would be cash booed. They just take that slice and go into a DST right so they get a little bit of diversification and they pay zero and capital gains taxes, they kick the can down the road on that.
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About Scott Saunders
Scott R. Saunders is Senior Vice President with Asset Preservation, Inc. (API), a subsidiary of Stewart Information Services Corporation (NYSE: STC). Scott has an extensive background in IRC 1031 tax deferred exchanges, having been involved in structuring hundreds of thousands of 1031 exchanges during his thirty five years in the exchange industry. He is a former President and former Board member of the Federation of Exchange Accommodators (1031.org), the national 1031 exchange industry trade organization and holds a Business Economics degree from the University of California at Santa Barbara (UCSB.) He is also a real estate instructor and investor with over 60 investment properties in 9 states. Mr. Saunders presents classes and podcasts on intermediate and advanced 1031 exchange strategies and tax strategies to accountants, attorneys, financial advisors, real estate brokers and principals nationwide. He has spoken at the annual National Bar Association Conference, NaƟonal Society of Accountants (NSA) Annual Conference, National Association of Realtors® Annual Conference, GMAC Real Estate’s Annual Convention, Annual Conference for the American Society of Cost Segregation Professionals, Building Owners and Management Association International (BOMA) Annual Conference, American Land Title Association (ALTA), Institute of Real Estate Management (IREM), Colorado Society of Certified Public Accountants Annual Convention, Colorado Association of Realtors Annual State Convention, Ohio Bar Association, the Real Estate Tax Summit, the Certified Commercial Investment Member (CCIM) and Institute of Real Estate Management (IREM) Success Series, American Academy of Attorney-CPAs, Tenant-in-Common Association (TICA), the University of Denver and Washington D.C. Bar Association and many other state and local financial, real estate and legal associations. In addiƟon, he has been a regular presenter of 8-hour C.L.E./C.P.E. approved classes on advanced 1031 exchange issues to accountants, attorneys, developers and CFO’s arranged by Lorman Education and National Business Institute. Scott provides webinars for continuing education credit on 1031 exchanges for many organizations including CPAAcademy.org, the CPA Leadership Institute and my-CPE.com. In addition to being an accredited speaker in numerous states, Mr. Saunders was a contributing author to the books Real Estate Exchanges: Using the Tax Deferred Exchange in Real Estate Investment Management and Do You Speak Purchase? Finding and Negotiating Your Own Commercial Building. He has been featured in The Wall Street Journal, CNBC, Forbes Real Estate Investor and U.S. News and World Report. He has written over 200 articles on 1031 exchanges, capital gain taxation and investment real His articles have been featured in the New York Real Estate Journal, Mid Atlantic Real Estate Journal, Inman News, REBusiness Online, Heartland Real Estate Business, Western Real Estate Business, REAL- TORS Land Institute Terra Firma, ALTA’s Title News, HousingWire and many other real estate and other financial publications. He is a member of the Real Estate Roundtable, a public policy organization with membership by invitation based in Washington, D.C. that represents the interests of real estate. Mr. Saunders is on the Real Estate Roundtable’s Tax Policy Advisory Committee. He is on the FEA Government Affairs Committee where he advocates for pro-business and investor-friendly tax policies with members in Congress.
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