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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal style='text-autospace:none'>Good Afternoon,<o:p></o:p></p><p class=MsoNormal style='text-autospace:none'><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'>I have a client who is selling a business which includes buildings on leased ground. The buyer has negotiated a new lease with the ground owner. The sale does not include any value for the lease. The 1031 exchange facilitator believes that the building sale proceeds may not be part of the 1031 exchange because the original ground lease was for a period less than 30 years. <o:p></o:p></p><p class=MsoNormal style='text-autospace:none'><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'>Thank you for your opinions. <o:p></o:p></p><p class=MsoNormal style='text-autospace:none'><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'>Thank you. <o:p></o:p></p><p class=MsoNormal style='text-autospace:none'><o:p> </o:p></p><p class=MsoNormal style='text-align:justify'><b><span style='font-size:14.0pt;font-family:"Harlow Solid Italic";color:#1F497D'>John H. Loeffler<o:p></o:p></span></b></p><p class=MsoNormal style='text-autospace:none'><o:p> </o:p></p><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:1.0in'><span style='color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p><div><p class=MsoNormal><b><span style='color:black'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='color:black'>Olson Loeffler Law Group, P.S.<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='color:black'>8414 N. Wall, Suite A<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='color:black'>Spokane, Wa 99208-6171<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='color:black'>Phone: 509.467.6767<o:p></o:p></span></b></p><p class=MsoNormal><a href="mailto:JohnL@Ollps.com"><b>JohnL@Ollps.com</b></a><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='margin-right:67.5pt;text-align:justify'><b><i><span style='font-size:10.0pt;color:black'>This communication, including attachments, is confidential, may be subject to legal privileges, and is intended for the sole use of the addressee. Any use, duplication, disclosure or dissemination of this communication, other than by the addressee(s), is prohibited. If you have received this communication in error, please notify the sender immediately and delete or destroy this communication and all copies. To comply with the requirements imposed by IRS Circular 230 Notice, we inform you that any US federal tax advice contained an any email, attachment, or other writing (including any attachments), unless specifically stated otherwise, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending any transaction or matter addressed herein to another party.<o:p></o:p></span></i></b></p><p class=MsoNormal><b><span style='color:black'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='color:black'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='color:black'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='color:black'><o:p> </o:p></span></b></p></div><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p></div></body></html>