Press Release

Providence, RI- September 15
In response to the hardships presented by Hurricane Katrina, the Internal Revenue Service (IRS) has extended certain "time sensitive acts" for "affected taxpayers".

"Time sensitive acts" include the 45 day identification deadline, the 180 day exchange deadline and the deadlines set forth in Rev. Proc. 2000-37 for safe harbor reverse exchanges.

A taxpayer qualifies for the extension if (i) the relinquished property was transferred on or before the disaster declaration or if the qualified indicia of ownership has been transferred on or before that date; and (ii) the taxpayer is an "affected taxpayer" or has difficulty meeting the time deadlines due to the disaster.

"Affected taxpayers" include individuals and businesses located in the disaster area, those whose tax records are located in the disaster area, and relief workers. Reasons for having "difficulty meeting the time deadlines due to the disaster" include:

1. The relinquished or replacement property is in the disaster area;
2. The principal place of business of one of the parties involved in the exchange is located in the disaster area (e.g. the QI, EAT, transferee, settlement attorney/agent, lender/financial institution, title insurer);
3. Any party to the transaction (or an employee involved in the transaction) is killed, injured, or missing as a result of the disaster;
4. A document prepared in connection with the exchange is destroyed, damaged, or lost as a result of the disaster;
5. A lender decides to suspend funding of loans for real estate closings due to the disaster;
6. A title insurer is unable to provide a required title insurance policy at closing due to the disaster; and
7. Any similar reason.

January 3, 2006 has been set as the extension deadline, subject to Notice 2005-3 which permits a 120 day postponement of the 180 day exchange deadline if, after the end of the 45 day identification period, the identified replacement property is "substantially damaged" or, in the case of a safe harbor reverse exchange, the identified relinquished property is substantially damaged.

All States 1031 Exchange Facilitator, LLC is a leading provider of Internal Revenue Code Section 1031 exchange consulting and Qualified Intermediary services. Its mission is to provide timely, accurate, and personal exchange services to its clients and their clients' professionals in order to assist them through the 1031 exchange process in a manner that develops mutual trust based upon All States 1031's experience and by maintaining the highest levels of security for their exchange funds.