Monroe, CT -- (SBWIRE) -- 04/10/2012 -- Legal 1031 Exchange Services, Inc. announced today that through the efforts of its president, Todd R. Pajonas, a bill to safeguard investors who utilize an IRC §1031 tax deferred exchange was introduced in the Connecticut legislature as H.B. 5415.
The bill, which is titled “An Act Providing Consumer Protection to Clients of Exchange Facilitators for Tax Deferred Exchanges” provides for protection of exchange funds deposited by investors with qualified intermediaries operating in the State of Connecticut by establishing investment standards, bonding requirements, and notification requirements to keep clients informed.
An IRC §1031 tax deferred exchange allows owners of real or personal property to defer the recognition of a capital gains tax they would have recognized when they sold their property. Exchanging allows investors to reinvest money into new business or investment properties which would otherwise have been paid to the government as a capital gains tax.
Connecticut State Representative John Shaban, who introduced the bill, clearly explained the bill’s intent by stating, "It is easier to stem a crises than respond to one. This bill offers reasonable and predictable consumer protection at no cost to the tax payer."
On March 15, 2012 Todd Pajonas, Suzanne Goldstein Baker, president of the Federation of Exchange Accommodators (FEA), and Anthony Lombardi, president of CATIC Exchange Solutions, testified in Hartford, CT on the need for the protections afforded by H.B. 5415 before the Committee on Banks. On March 20, 2012 the members of the Committee on Banks unanimously voted 18-0 and issued a Joint Favorable Report for H.B. 5415.
Todd Pajonas, commenting on the recent progress, stated, “In addition to thanking Rep. Shaban, the sponsor of H.B. 5415, who took the time to understand how this law, if enacted, will protect investors, I want to thank Sen. Duff and Rep. Tong, the Chairs of the Committee on Banks, who allowed us to testify and lent their support as well. I also owe a debt of gratitude to my colleagues with the Federation of Exchange Accommodators who played an important role in our success. It was truly a team effort.”
The next step in making H.B. 5415 a law in the State of Connecticut will be a vote by the House of Representatives and Senate.
Legal 1031 Exchange Services, Inc., with offices in Connecticut, New York, Massachusetts and Florida, provides qualified intermediary services for 1031 exchanges, as well as other real estate tax related services.