Insights from the FEA Annual 1031 Conference

by Maura Snabes, Esq., CES, NTP

The Federation of Exchange Accommodators (FEA) Annual 1031 Conference this September once again delivered an exceptional blend of education, insight, and industry updates for exchange professionals nationwide.

Co-Presenting the 1031 Bootcamp

This year began with the honor of co-presenting the 4-hour 1031 Bootcamp alongside David Gorenberg, Esq., CES®. The session was both well-attended and well-received. Having presented the Bootcamp multiple times before, David carried most of the heavy lifting having presented Bootcamp for the previous 3 years. It was a pleasure to assist, add a bit of conversational energy, and keep the discussion lively—ensuring that attendees were fully engaged and grasping every concept.

A Legislative Outlook: “View from the Hill”

Our industry lobbyist provided the latest “view from the Hill,” updating attendees on ongoing legislative challenges facing §1031 exchanges. While 1031s have been on the chopping block several times in recent years, they have been preserved—thanks in part to the FEA’s data-driven advocacy. The organization’s comprehensive economic studies have demonstrated the significant micro- and macroeconomic benefits that like-kind exchanges bring to the U.S. economy. Unfortunately, personal property exchanges were not as fortunate and were eliminated a few years ago.

Annual Tax Update with Mary Foster

Mary Foster, Esq., CES®, who quite literally helped “write the book” on 1031 exchanges, delivered her annual Tax Update. While there were no sweeping new developments, one case stood out—In the Matter of Hadar & Shomron, a recent New York Tax Appeals decision involving a “drop and swap” transaction.

Key Takeaways from the Hadar & Shomron Case

On June 12, 2025, an Administrative Law Judge (ALJ) ruled that a distribution of TIC (tenants in common) interests, followed by separate same-day swaps by two of the three TIC owners, met the requirements of §1031. Since New York conforms to federal law on like-kind exchanges, the ruling centered on whether the transaction qualified as a valid §1031 exchange.

Factors influencing the decision included:

1. Deeds were recorded in the names of the TIC owners, who were also listed as transferors in sale documents.
2. The TIC owners executed a formal TIC agreement.
3. All but one document correctly identified the TIC owners as sellers.
4. The property’s lender was aware of and did not object to the TIC distribution.
5. Sale proceeds were held by separate Qualified Intermediaries (QIs) for each TIC owner.

While the TIC owners did not report income or expenses—since the sale and TIC distribution occurred on the same day—the ALJ found this inconsequential.

The most notable takeaway from the ALJ’s opinion was the statement that:

“While petitioners held title to the property only momentarily, the plain language of IRC §1031 does not require ownership of the relinquished property for any particular period of time.”

Several precedents were cited, affirming that even momentary ownership can satisfy the requirements for a valid exchange, suggesting that the “held for” requirement can effectively “tack.”

What It Means Going Forward

Although this ruling applies only within New York and has no precedential effect at the federal level, it offers valuable insight—and potentially a roadmap for structuring compliant drop-and-swap transactions in the future.

Final Thoughts

The FEA Conference continues to be a cornerstone event for professionals involved in 1031 exchanges, offering both technical education and advocacy updates. This year’s discussions reinforced the importance of staying engaged with legislative developments, understanding nuanced case law, and collaborating across the industry to protect the benefits of like-kind exchanges.

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