Congress Considers National Data Privacy Law

Written by Richard A. Chapo

Legislation was introduced into Congress this week that would establish a national data privacy law. The bill would require businesses to disclose to consumers any breaches that result inrepparttar exposure of personal information.

The legislation is a reaction torepparttar 150517 massive security breaches that have occurred overrepparttar 150518 last year. Inrepparttar 150519 most notable breach, over 40 million credit card numbers were exposed in a security breach involving CardSystems, an online processor. LexisNexis, Bank of America and other corporate entities have also suffered breaches exposingrepparttar 150520 personal information of millions of individuals.

Underrepparttar 150521 new legislation, businesses exposingrepparttar 150522 personal information of more than 1,000 individuals would be required to notifyrepparttar 150523 individuals. Failure to comply withrepparttar 150524 law would result in penalties of up to $11 million per incident. Interestingly,repparttar 150525 legislation would bar businesses and schools from putting Social Security numbers on any form of identification.

Upon receiving notice, consumers would be allowed to put a notice on their credit reports, which would prevent any company from providing new credit under their name. This would effectively stop thieves from opening new credit accounts withrepparttar 150526 stolen information.

What is Tax-Deferred Exchange?

Written by Neda Dabestani-Ryba

What is Tax-Deferred Exchange?

By Neda Dabestani-Ryba Prudential Carruthers REALTORS

Under Section 1031 ofrepparttar Internal Revenue Code, owners of real estate held for investment or use in a trade or business can swap their property tax-free for "like-kind" real estate. Exchanges are made for people wanting to stay invested in real estate, increase their leverage and to avoid paying hefty taxes uponrepparttar 150476 sale of property. Like Kind - Apartments - Rental Houses - Retail Properties - Commercial - Raw Land - Office Buildings - Industrial - Ranches Non Qualifying Properties - Personal Residences - Dealer Property - Partnership Interests - Inventory Reason to Exchanges - Restoring Depreciation that will soon expire - by exchanging one property for another of greater value. - To upgrade size and/or quality of investment. An exchange can be utilized to combinerepparttar 150477 equity of one or more properties into a larger singular investment. - To change investment location. An exchange can be executed in anticipation of market trends to maximize appreciation potential. 7 Steps for a Successful 1031 Tax Deferred Exchange Step 1: Consult with your tax and financial advisors to determine if a tax deferred exchange is appropriate for your circumstances and compatible with your investment goals. Step 2: Listingrepparttar 150478 Relinquished Property for sale with a licensed real estate broker. Duringrepparttar 150479 first steprepparttar 150480 Exchanger will listrepparttar 150481 Relinquished Property with a real estate broker. The broker/agent will discloserepparttar 150482 intent to complete an exchange inrepparttar 150483 listing agreement. Step 3: Offer, Counter Offer and Acceptance. The Exchanger enters into a contract withrepparttar 150484 Buyer forrepparttar 150485 sale/exchange ofrepparttar 150486 Relinquished Property. The broker/agent disclosesrepparttar 150487 Seller/Exchanger's intent to exchange intorepparttar 150488 Purchase Agreement and Receipt for Deposit. Step 4: Open escrow forrepparttar 150489 Relinquished Property and coordinate withrepparttar 150490 Facilitator. The Facilitator preparesrepparttar 150491 exchange agreement and coordinates withrepparttar 150492 escrow holder to close escrow as Phase I of a tax deferred exchange. Important: The exchange agreement must be in place and signed by all parties prior to close of escrow. Additionally, all earnest money deposits should be placed withrepparttar 150493 title company. Step 5: Replacement Property Identification. After closing escrow forrepparttar 150494 sale ofrepparttar 150495 Relinquished Property,repparttar 150496 Exchanger must identify all Replacement Property within 45 days from day after close of escrow. Step 6: Contracting forrepparttar 150497 Replacement Property. After closing onrepparttar 150498 Relinquished Propertyrepparttar 150499 Exchanger has 180 days to acquirerepparttar 150500 Replacement Property. Withrepparttar 150501 help of his or her agentrepparttar 150502 Exchanger enters into contract to purchaserepparttar 150503 Replacement Property fromrepparttar 150504 Seller. Inrepparttar 150505 contract to purchaserepparttar 150506 agent disclosesrepparttar 150507 Exchanger's intent to completerepparttar 150508 exchange and obtainsrepparttar 150509 Seller's cooperation. Step 7: Open escrow forrepparttar 150510 Replacement Property. The Facilitator preparesrepparttar 150511 Phase II Exchange Agreement and coordinates withrepparttar 150512 Replacement Property Escrow holder. The funds held in trust byrepparttar 150513 Facilitator are placed in escrow andrepparttar 150514 Replacement Property is purchased byrepparttar 150515 Facilitator fromrepparttar 150516 seller. The Facilitator then transfersrepparttar 150517 Replacement Property torepparttar 150518 Exchanger andrepparttar 150519 transaction is closed as Phase II of a delayed exchange. Identification of Replacement Property Regardless ofrepparttar 150520 number of relinquished properties transferred byrepparttar 150521 Exchanger as part ofrepparttar 150522 same exchange,repparttar 150523 maximum number of replacement properties thatrepparttar 150524 Exchanger can identify is as follows: 3 Property Rule: Three properties without regard torepparttar 150525 fair market values ofrepparttar 150526 replacement properties. Or 200 Percent Rule: Any number of properties as long as their aggregate fair market value as ofrepparttar 150527 end ofrepparttar 150528 identification period does not exceed 200 percent ofrepparttar 150529 aggregate fair market value of allrepparttar 150530 relinquished properties as ofrepparttar 150531 daterepparttar 150532 relinquished properties were transferred byrepparttar 150533 Exchanger. Exception 95 Percent Rule: Any number of replacement properties identified beforerepparttar 150534 end ofrepparttar 150535 identification period and received beforerepparttar 150536 end ofrepparttar 150537 exchange period, but only ifrepparttar 150538 Exchanger receives beforerepparttar 150539 end ofrepparttar 150540 exchange period identified replacement propertyrepparttar 150541 fair market value of which is at least 95 percent ofrepparttar 150542 aggregate fair market value of all identified replacement properties. Glossary of Terms Accommodator: A principal involved inrepparttar 150543 exchange transaction who agrees to assistrepparttar 150544 exchanger to effect a tax-deferred exchange. Same as Facilitator or intermediary. Accommodating Party: In an exchange of properties there is always a person or entity that steps in to accommodate or facilitaterepparttar 150545 exchange transaction. Depending on howrepparttar 150546 transaction is structured,repparttar 150547 accommodating party may incur additional liability in their efforts to assist inrepparttar 150548 exchange.

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