RECENT BLOG POSTS
Here are some ways to know if you're a true San Joaquin Valley Resident 1. You can properly pronounce Visalia, Tulare, and Yosemite.2. You think people who complain about the heat in their states are sissies.3. A earth quake is your signal to go out in the yard and have a look see.4. Stores don't...
04/05/2008
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Special needs kids who are athletes.I coach special needs kids in a variety of sports, right now it is baseball. I have a number of very good players or what I like to call my athletes. We have played only a couple of games however; our last game was most memorable. It was the last inning with...
04/05/2008
Failed Tax-Deferred Exchange May Qualify for Installment Sale TreatmentInvestors often ask "what happens to my 1031 exchange transaction if I sell my relinquished property and cannot find suitable like-kind replacement property to identify, or I cannot acquire the property that I did identify, wi...
04/04/2008
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Beware of schemes Taxpayers should be wary of individuals promoting improper use of like-kind exchanges. Typically they are not tax professionals. Sales pitches may encourage taxpayers to exchange non-qualifying vacation or second homes. Many promoters of like-kind exchanges refer to them as "tax...
04/03/2008
How do you report Section 1031 Like-Kind Exchanges to the IRS? You must report an exchange to the IRS on Form 8824, Like-Kind Exchanges and file it with your tax return for the year in which the exchange occurred. Form 8824 asks for: Descriptions of the properties exchanged Dates that proper...
04/03/2008
What are the different structures of a Section 1031 Exchange? To accomplish a Section 1031 exchange, there must be an exchange of properties. The simplest type of Section 1031 exchange is a simultaneous swap of one property for another. Deferred exchanges are more complex but allow flexibility. T...
04/03/2008
How do you compute the basis in the new property? It is critical that you and your tax representative adjust and track basis correctly to comply with Section 1031 regulations. Gain is deferred, but not forgiven, in a like-kind exchange. You must calculate and keep track of your basis in the new p...
04/01/2008
Make sure you complete your due diligence on your Qualified Intermediary. Be careful in your selection of a qualified intermediary as there have been recent incidents of intermediaries declaring bankruptcy or otherwise being unable to meet their contractual obligations to the taxpayer. These sit...
04/01/2008
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Who qualifies for the Section 1031 exchange? Owners of investment and business property may qualify for a Section 1031 deferral. Individuals, C corporations, S corporations, partnerships (general or limited), limited liability companies, trusts and any other taxpaying entity may set up an exchang...
04/01/2008
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We have all heard it before...what if I identified to my broker, my accountant, etc. Here is a quote from the new IRS Fact Sheet. We now know that brokers will not qualify. This should help deal with some of those clients. "The identification must be in writing, signed by you and delivered to...
04/01/2008