We have conditioned our clients to expect that state capital gains tax can be deferred along with the federal tax exposure by utilizing Section 1031 for their exchanges. It is true, most states will honor the deferral as long as the gain is being rolled into the new property. However, you should be aware that […]
There are two types of real estate that can be sold with advantageous tax treatment, your primary residence and your business/investment property. Favorable treatment exists for the sale of a personal residence if the property has been the primary residence of the taxpayer for two of the preceding five years. Section 121 of the Internal […]
The Internal Revenue Service recently released Revenue Procedure 2013-13 that provides a new safe harbor for home office deductions. This has the potential to make your calculations streamlined where it is difficult to determine a fair value deduction. Generally speaking, Section 280A disallows any deduction for personal expenses associated with the taxpayer’s residence unless a […]
No, not at all. While the discussion (if you can call it that) in Washington is for more streamlined tax parity, the new tax rates overwhelming approved in the American Taxpayer Relief Act of 2012, and signed into law on 1/3/2013, had little impact on 1031. If anything, it is a tax strategy not to […]
Only in certain circumstances are the 45 and 180 day Section 1031 time limits extended.
If you are conducting a Section 1031 Exchange, “what’s in a name” can be the difference between a successful exchange and one that will fail on its face. This provision, called the Identity of Taxpayer Rule, requires that the same person or entity that sold the old or Relinquished Property be the same one that […]
By Dave Owens, CPA Republished with Permission As someone that has been in the tax business for over twenty years, I cannot ever remember seeing any predicament like the tax code is in now. Most people do not realize but I believe there will be major tax legislation sometime in 2010. There has to be. […]
It is possible to convert property from one type to another without tax consequences. Your primary residence can become your rental/investment property and your investment/rental property can become your primary residence.
We find that many times the concepts of basis, indicated gain, realized gain and most importantly the level of taxation that is faced when selling investment property is widely mis-understoon. Even amongst professionals. We have developed a quick and easy tool to help to visualize a Section 1031 Exchange.
By: George E. Foss III As the days and weeks pass, the effectiveness (from IRS’ perspective) of the new provisions slipped into Section 121 grow and grow. It used to be true that you could move into one of your rental properties, live there for two more years as your primary residence, and then sell […]