ph: (312) 368-0100 | fx: (312) 368-0111
180 North LaSalle Street, Suite 3200 | Chicago, Illinois 60601

LawGram Volume 16, No.2

Table of Contents

1031 Tax Deferred Exchange: What Transactional Expenses are Boot?

 By: Morris R. Saunders

 Section 1031 of the Internal Revenue Code has been used by sellers of commercial or investment real estate to defer the recognition of capital gains tax arising from the sale of the property.  In a non-simultaneous exchange, this is accomplished by the seller transferring the proceeds of the sale to a Qualified Intermediary, and then later using the proceeds of the sale to purchase another like-kind parcel of real estate (property of the same nature, character or class as the property that was originally sold).  If the seller follows the procedures required under the Code, then the amount of proceeds utilized to purchase the like-kind property will not be taxable at the time of the sale or the exchange.


The Illinois Freedom to Work Act:  New Illinois Law Prohibits Non-compete Agreements With ‘Low-Wage’ Employees

By: Robert G. Cooper
As of January 1, 2017 it is no longer legal for an employer to enter into a restrictive covenant not to compete with a “low wage” employee in Illinois.  The Illinois Freedom to Work Act (the “IFWA”) passed through the Illinois legislature as Public Act 099-0860, and after two amendments, was signed into law by Governor Rauner on August 19, 2016.


Trademarks:  Don’t Describe. . . . Suggest

By: Natalie A. Remien
Businesses that do not have a marketing budget the size of McDonald’s (the rest of us) often try to develop brands for their products that are too descriptive to be protected.  The strongest of brands, and thus trademarks, are those that are inherently distinctive, meaning that the brand does not describe any quality of the product or service it symbolizes (think Apple for computers).


Don’t Say That Online!

By: Natalie A. Remien

Just about every business now has a website, and in addition to that, many businesses also have a blog, a Facebook page, and a Twitter campaign. Most businesses now are aware that if they market products to children, there may be some special rules. However, many businesses are unaware of the new FTC rules concerning online content. This article takes a look at some FTC guidelines and encourages all businesses to be aware.