                                 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.