We have again published the complete IRS Form 8824 Workbook by Ed Horan titled "Reporting the Like-Kind Exchange of Real Estate Using IRS Form 8824." The workbook is written and made available because Form 8824 itself is very complicated and uses unfamiliar terms. The 8824 Workbook for 2018 returns is now available free on our web site. Also, … [Read more...]
VA Conformity for 1031 Exchanges
The TCJA was enacted in December of 2017. Some states have not changed their ‘date of conformity’ to conform to the provisions of the federal Tax Cut and Jos Act (TCJA). Personal property can no longer be exchanged under federal law, 1031 exchanges are limited to real property. Virginia’s ‘date of conformity’ with the federal Internal Revenue … [Read more...]
Tax Case: Don’t mess with the IRS
A California realtor learns not to mess with the IRS. Taxpayer did an exchange of her relinquished two rental properties but acquired a residence as replacement property and used it as her principal residence. She obtained an owner-occupied loan on the replacement and falsely reported the primary residence as a rental property and falsely … [Read more...]
Repeal of Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) Proposed
Foreign investors can take advantage of the 1031 exchange process; however, the process is confusing and overly burdensome. (We have been involved with several FIRPTA 1031 exchanges.) The Real Estate Investment and Jobs Act has been introduced to eliminate FIRPTA. During the tax reform process, many organizations endorsed FIRPTA repeal in joint … [Read more...]
Drop and Swap CA Case: Taxpayer Wins on a 2007 Transaction
The appeal of Sharon Mitchel vs. California is a CA Drop and Swap tax case we are watching closely. The case has potential national impact. The language of the 1031 law says you can exchange property that is held for investment or business purpose for replacement investment or business property also to be held. The only way to defer taxes is to own … [Read more...]
