                                 CODE OF VIRGINIA

DEFINITIONS (§ 55.1-800)

As used in this chapter, unless the context requires a different meaning:
		&#8220;Affiliated with&#8221;  means that a person directly, or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, the other specified person.
		&#8220;Change in control&#8221;  means any transfer within 12 months of more
than 50 percent of the assets or ownership interests, direct or indirect, of the
exchange facilitator.
		&#8220;Commingle&#8221;  means to mix together exchange funds with operating
and other nonexchange funds belonging to or under control of the exchange
facilitator in such a manner that a client&#8217;s exchange funds cannot be
distinguished from operating or other nonexchange funds belonging to or under
control of the exchange facilitator.
		&#8220;Deposit account&#8221;  means a demand, time, savings, passbook, money
market, certificate of deposit, or similar account maintained with a financial
institution.
		&#8220;Exchange Accommodation Titleholder&#8221;  or &#8220;EAT&#8221;  has
the same meaning ascribed thereto in IRS Revenue Procedure 2000-37.
		&#8220;Exchange client&#8221;  means the taxpayer with whom the exchange
facilitator enters into an agreement described in subdivision 1 of the
definition of &#8220;exchange facilitator.&#8221;
		&#8220;Exchange facilitator&#8221;  means a person that:

1. For a fee facilitates an exchange of like-kind property by entering into an
agreement with a taxpayer:
			a. By which the exchange facilitator acquires from such taxpayer the
contractual rights to sell such taxpayer&#8217;s relinquished property located
in the Commonwealth and transfer a replacement property to such taxpayer as a
qualified intermediary as that term is defined under Treasury Regulation &#xA7;
1.1031(k)-1(g)(4);
			b. To take title to a property located in the Commonwealth as an Exchange
Accommodation Titleholder; or
			c. To act as a qualified trustee or qualified escrow holder as those terms
are defined under Treasury Regulation &#xA7; 1.1031(k)-1(g)(3), except as
otherwise provided in this definition; or

2. Maintains an office in the Commonwealth for the purpose of soliciting
business as an exchange facilitator.
			&#8220;Exchange facilitator&#8221;  does not include (i) the taxpayer or
disqualified person as that term is defined under Treasury Regulation &#xA7;
1.1031(k)-1(k) seeking to qualify for the nonrecognition provisions of Internal
Revenue Code &#xA7; 1031; (ii) any financial institution or any title insurance
company, underwritten title company, or escrow company that is merely acting as
a depository for exchange funds or that is acting solely as a qualified escrow
holder or qualified trustee as those terms are defined under Treasury Regulation
&#xA7; 1.1031(k)-1(g)(3), and is not otherwise facilitating exchanges; (iii) a
person who advertises for and teaches seminars or classes or otherwise gives
presentations to attorneys, accountants, real estate professionals, tax
professionals, or other professionals where the primary purpose is to teach the
professionals about tax deferred exchanges or train them to act as exchange
facilitators; or (iv) an entity that is wholly owned by an exchange facilitator
or that is wholly owned by the same person as the exchange facilitator and is
used by such entity to facilitate exchanges or to take title to property in the
Commonwealth as an EAT.
			&#8220;Exchange funds&#8221;  means the funds received by the exchange
facilitator from or on behalf of the exchange client for the purpose of
facilitating an exchange of like-kind property.
			&#8220;Fee&#8221;  means, for purposes of subdivision 1 of the definition of
&#8220;exchange facilitator,&#8221; compensation of any nature, direct or
indirect, monetary or in-kind, that is received by a person or a related person
as described in Internal Revenue Code &#xA7; 267(b) or 707(b) for any services
relating to or incidental to the exchange of like-kind property under Internal
Revenue Code &#xA7; 1031.
			&#8220;Financial institution&#8221;  means any bank, credit union, savings
and loan association, savings bank, or trust company chartered under the laws of
the Commonwealth or the United States whose accounts are insured by the full
faith and credit of the United States of America, the Federal Deposit Insurance
Corporation, the National Credit Union Share Insurance Fund, or other similar or
successor programs and any direct or indirect subsidiary of such bank, credit
union, savings and loan association, savings bank, or trust company.
			&#8220;Person&#8221;  means, in addition to the singular, persons, groups of
persons, cooperative associations, limited liability companies, firms,
partnerships, corporations, or other legal entities and includes the agents and
employees of any such person.
			&#8220;Transferee&#8221;  means the party or parties to whom the ownership or
control of the exchange facilitator has been transferred.

HISTORY: 2010, c. 409, § 55-525.1; 2019, c. 712.