Investors in realty exchanges seek relief
Appeal to avoid paying taxes on money that vanished.
Hundreds of investors – some who lost millions after the collapse of a firm specializing in tax-deferred real estate deals – are seeking relief from the Internal Revenue Service to avoid paying taxes on money that has disappeared.
Many are Bay Area residents who entrusted their money to 1031 Advance in San Jose, a subsidiary of the Richmond, Va.-based 1031 Tax Group that filed for bankruptcy in New York City this month.
Attorneys hired by several investors and a trade organization said Monday they have asked the IRS to lift the rigid 180-day rule that governs the buying and selling of property in transactions known as 1031 exchanges.