When potential clients call to find out what the capital gains rate is, they usually think “oh, that’s not so bad”. What they fail to understand is that there are three tax hurdles to overcome on the sale of a capital asset. The first hurdle is largely misunderstood and it can be very costly. Upon […]
Taxpayers contemplating using the provisions of Internal Revenue Code Section 1031 are well advised to audit proof their transactions. The mere fact of including Form #8824 as part of the supplemental schedules in a taxpayers tax return will not give rise to the return being pulled for audit by the Internal Revenue Service (IRS). The […]
We are often asked how Section 1031 transactions are monitored by the Internal Revenue Service (IRS) and whether a 1031 police force exists to monitor taxpayer actions. The truth is that in nearly three decades of practice, we have never been informed of the existence of this authority. However, we regularly point out to clients […]
Section 1031 is the most underutilized tax deferral tool still available to the US Taxpayer. There are two primary year end tax considerations when using Section 1031. This article describes these considerations.