For our May Partner Spotlight, we had the pleasure of speaking with Annamarie Kooning, Northwest Division Manager for Asset Preservation, Inc. (API). API is a leading 1031 exchange-qualified intermediary (QI) in the Northwest. API helps real estate investors defer capital gain taxes when completing a 1031 exchange.

 

Section 1031 exchanges are a powerful tax strategy that allow investors to redeploy equity into better-performing properties and defer all capital gain taxes if structured properly.

 

Annamarie pointed out that many people do not understand how important 1031 exchanges are to the U.S. economy. “They naively believe it is just a loophole that benefits the wealthy,” explained Annamarie. “Internal Revenue Code Section 1031 is one of the single greatest wealth-building tools available to the real estate investor.”

 

“Some investors are not aware how expansive the definition of like-kind property is in a 1031 exchange,” Annamarie elaborated. “Any real property used in a business or held for investment state can be exchanged for real estate held in the same manner.

 

Annamarie provided the following scenario, “Investors can exchange out of bare land and into a single-family rental. Later they can exchange out of the rental house and into a fourplex, commercial property, or any real estate held for investment. With certain restrictions, even vacation homes held for investment qualify, as does the portion of a property rented short-term like in an Airbnb property.”

 

We asked Annamarie how she got involved in the business of 1031 exchanges. After 24 years in the real estate world, first as a title and escrow representative and gradually climbing the ranks to the commercial market segment, Annamarie became intrigued with 1031 exchange strategies and how this effective method builds real estate wealth. In 2015 she put in the hard work of committing 97 pages of tax code to memory on the subject and for the past eight years has become one of the top experts in the Pacific Northwest, opening over 1000 exchanges for investors, attorneys, real estate brokers and agents, accountants, financial advisors, and mortgage bankers and brokers.

 

In addition to her day-to-day responsibilities at API, fielding inquiries from potential investors, qualifying properties to ensure they meet the necessary requirements for a 1031 exchange, and guiding exchangers through the complex process, Annamarie also teaches a variety of clock-hour CE/CLE classes. Annamarie shared that teaching is the most enjoyable aspect of her job as she can tap into her inner actress. “What I enjoy most about this people person’s occupation, is the education process, whether it be a potential exchanger or a participant in one of my continuing education classes. It is amazing to hear from my exchangers how our knowledge has assisted them in making their exchange process smooth.”

 

Annamarie went on to explain that the bulk of the industry is comprised of small real estate investors and owner-users of business properties. “Naturally, there are corporate clients who perform Section 1031 tax deferred exchanges as well, but 1031s are available to any taxpayer that is interested in building wealth through investment property.”

 

Connect with Annamarie Kooning at API

 

Phone:                       503.348.9577

Direct toll-free:          877-90-1031

Email:                         annamarie@apiexchange.com

Web:                           apiexchange.com

Facebook:                 @1031exchange

LinkedIn:                   @asset-preservation-inc