Featured 1031 exchange real estate VIPs
TJ, Bruce & Elizabeth Starker
As our inaugural VIPs, it is fitting that we acknowledge the Starker family. In the 1970s, the Starkers won a series of lawsuits which set the precedent for delayed exchanges. Their efforts contributed directly to what we know today as the 1031 delayed exchange (Starker exchange).
TJ & Bruce Starker were highly educated foresters with a vision. Starting in the 30's, the Starkers began purchasing 2nd Growth Forest (land that was previously/over logged) which was seen as undesirable compared to the seemly endless rich Oregon forest. The Starkers believed in 2 things, their ability to improve their investment into prime forest lands and that the seemingly 'endless' Oregon forest was anything but...
TJ & Bruce's strategy of buying second growth forests paid off. Over time, through careful management and reforestation efforts, the Starker Forests timberland investments had appreciated greatly in value as they became desirous logging properties.
In 1967, the Starkers(Starker Forests) decided to sell a large parcel of property. The property to be sold appreciated greatly in value during their long term ownership, but they faced a large capital gain. Because they intended to reinvest the proceeds of the sale and needed time to find suitable replacement property, the Starkers decided to structure a 1031 exchange in an innovative delayed exchange format.
The IRS disallowed the delayed exchange structure, and demanded capital gains taxes be paid on the sale. The Starkers disagreed and brought the matter to court. Over a series of decisions, the delayed Starker exchange structure prevailed and set the precedent for 1031 delayed exchanges.
Later, the IRS amended the tax code in 1984 to reflect our modern day 1031 exchange requirements of a 45 day identification 180 day replacement period. In 1991, the Treasury Department extended to business property owners the same consideration under IRC 1031 creating a boom in activity that extends through today.
Today, Starker Forests is a 4th generation family business, and is a large community focused timberland company with ownership of over 60,000 acres of Oregon forest. Starker forests continues to operate based upon the founding beliefs of sound forest management through conservation and reforestation.
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The Starker family & Starker Forests are unaffiliated with 1031store. The article provides an insight into the historic case that created a foundation for the delayed 1031 exchange structure, and is for general information purposes only.
The VIP section profiles the individuals and companies that are driving forces in triple net lease(nnn) and 1031 exchange world. Criteria for VIP recognition is based upon relevance to the industry and 1031store.
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