industry spotlight – michael brady, esq
title and new company
general counsel to riverside 1031 llc
time with current firm
since september 2012. prior to this position, i oversaw the eastern region for the qualified intermediary division of a national title insurance underwriter.
nature of your business
riverside 1031 (www.rs1031.com) is a national qualified intermediary for 1031 exchanges. we help guide our clients and their tax and legal advisors through the somewhat confusing regulations that apply to tax deferred exchanges under irc §1031. our goal is to make every exchange smooth and worry free. we are affiliated with riverside abstract llc, a multi-state title agency, which underwrites with all of the leading title insurance companies.
education
cum laude from new york law school (member of the law review). ba in political science – binghamton university
certified exchange specialist® designation from the federation of exchange accommodators, the national trade association which represents professionals who conduct like-kind exchanges.
hometown
i have lived on long island for most of my life. i grew up in mount sinai, new york, and i have lived nearby in kings park, new york for the last 20 years.
most influential person in your life
without a doubt, my parents are the most influential people in my life. they raised me to value education, hard work and charity, and encouraged me and my sisters to lead healthy, active lives.
last movie you saw
i recently saw argo, which i really enjoyed. i understand that the story is loosely based on a true story and is not entirely accurate, but the movie is still an engaging spy thriller.
favorite sports
i’m a runner, so i’m a big fan of meb keflezighi, the 2004 olympic silver medalist in the marathon. that was the first american marathon medal since 1976. he also took 4th place in the london olympics last year, and he was 37 years old! you don’t see many olympic athletes that age, except maybe in curling.
i am a long suffering fan of the new york islanders, long island’s only sports team, at least until they move to brooklyn in 2015. they’ve had many tough seasons, but i’ll never forget the stanley cup years from 1980-83.
…about business
what is the near term outlook for section 1031 exchanges
the concept of tax deferred exchanges has been an integral part of the tax code since the 1920s. i believe it will remain so for many years to come. with the fiscal cliff negotiations resulting in capital gain tax increases for many investors, i believe that 1031 exchanges will be an even more important tool for astute real property investors. we’ve been very busy, and our title insurance clients are showing great interest in 1031 exchanges.
talk about the changes in capital gains and any other issues affecting the intermediary business in the near term.
effective january 1, the maximum long term federal capital gain tax rate increased to 20%. on top of that, many investors will also be subject to the new 3.8% net investment income tax. in light of these increases, our services as a qualified intermediary are as important as ever. our clients are always seeking ways to maximize their returns, and 1031 exchanges provide a way to do just that.
is there any legislation coming down the pipe that concerns you regarding section 1031 exchanges?
there’s a lot of talk about tax reform, but very little information about what exactly that means. given the cost of fighting two wars and bailing out the financial and auto industries, it’s no secret that the federal government is looking for sources of revenue. i just hope that congress realizes that 1031 exchanges have a minimal impact on tax revenues, yet eliminating irc §1031 from the tax code could be a severe blow to the real estate industry, which still has not fully recovered from the recession.
join us next time for the industry spotlight.
florida roi commercial property brokerage, inc is a licensed florida real estate corporation. while roi endeavors to ensure that its content is accurate and correct, it makes no express or implied warranty, representation or understanding to its accuracy, reliability or completeness. this interview has been produced by roi and is intended for information purposes only. the opinions express by guest are the opinions of the guest and may not reflect the opinions of roi or roi employees or staff.
