DMR Public Records Leaks: Shumate land transaction raises questions (Updated)

There was one document in the last care package that I could not fit with the others yet the leaker thought it important enough to include. I’m hoping the community here can help solve this mystery. The language on Exhibit A leads me to believe this may be part of a section 1031 Exchange but we can’t conclude that based solely on these documents. What we do know was that Team Shumate was doing land transactions right up to the time the larger DMR Scandal broke in the media:

Shumate Loan July 2012

Shumate Loan July 2012

Update:
See comments for the answer to the question.

9 thoughts on “DMR Public Records Leaks: Shumate land transaction raises questions (Updated)”

      1. The answer in order is no and yes. Tim Holleman contacted me indicating this was a refinance of the marital homestead.

  1. I do not see anything that leads me to believe this is part of a 1031 exchange. Am I missing something?Looks more like a refinance to pay attorney bills. Any green herons or white egrets on site? Looked at this on the Harrison County website and I must say looks to have conservation potential. I guess its to late for CIAP or Heritage.

    1. The use of the phrase “signed for identification” has a very precise meaning in Section 1031. I normally see the paperwork well after the fact. I have personally seen the IRS unwind a 1031 exchange that the taxpayer could not prove the date of identification in the transaction documents. There is no doubt per the above.

      I’ve done deferred, forward and reverse exchanges and the rules get very arcane and complex, especially if debt is involved. THe IRS does a good job explaining things.

      http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031

      The salient language on identification:

      While a like-kind exchange does not have to be a simultaneous swap of properties, you must meet two time limits or the entire gain will be taxable. These limits cannot be extended for any circumstance or hardship except in the case of presidentially declared disasters.

      The first limit is that you have 45 days from the date you sell the relinquished property to identify potential replacement properties. The identification must be in writing, signed by you and delivered to a person involved in the exchange like the seller of the replacement property or the qualified intermediary. However, notice to your attorney, real estate agent, accountant or similar persons acting as your agent is not sufficient.

      Replacement properties must be clearly described in the written identification. In the case of real estate, this means a legal description, street address or distinguishable name. Follow the IRS guidelines for the maximum number and value of properties that can be identified.

  2. DH, I have never been so disappointed in our government about anything as I am about this investigation. The Bush decision to attack for the possession of WMD’s was really bad, and imo, failure of our Federal and State Audiors to DO THEIR DUTY as sworn UNDER OATH and PROTECT THE PEOPLE rates right up there with Dub’s self-serving decision.
    Why hasn’t the Obamer administration jumped on this?? I am sure that he has no love lost for his nemesis Fatass, who spewed everything ugly he could about him when he was elected. What is going on??? We are living in a crazy State! Has the world gone mad????? Is it just me or do others feel like we have been let down by our State and Federal leaders??
    Why is Stacey Pickering still in his position??? Why hasn’t he been releaved of his duties???? (The ones that he does not perform by the way). What about Wayne Dowdy??? What has he done??? Where are you Chris Lott??? Are we on candid camer????

  3. I invite all of you readers to send an email or letter to US Attorney General Eric Holder, 950 Pennsylvania Avenue N, Washington, DC 20350-001 or email to [email protected] asking for their help in cleaning up the MOST CORRUPT STATE IN THE NATION. I do not know if we will get any response but we can only try. Our elected officials appear to have thrown in their lot with the cronies and state leaders including Barbour, Bryant, Pickering, Wiggins, McKay, Wicker, Reed, etc. therefore we will get no help from them in cleaning up the mess at DMR.

Leave a Reply

Your email address will not be published. Required fields are marked *