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http://www.irs.gov/publications/p946/ch04.html#d0e5468
See this link…most commonly if you own a residential rental property you are on a 27.5 year schedule and if you own commercial property you are on a 39 year schedule.
Written by James Brennan on January 21st, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and General Tax Q&A and Form 8824 and Reporting Your Exchange and Calc_Q2.
One other item that frequently shows up on closing statements and the list of most frequently asked questions involves seller and buyer credits. Such items do not require a payment, the way an invoiced cost would. When a seller is given a credit by a buyer, it will increase the net purchase price. When a […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Topics and Settlement Q&A and Form 8824 and 1031 Calc FAQs and Calc_Q5 and Calc_Q6 and Calc_Q8.
Costs that are either recurring or do not specifically relate to the closing. Such costs should not be paid for using exchange proceeds without incurring a tax liability. When selling property, such costs should be paid for “out of pocket”. When buying property, such costs should either be paid for with loan proceeds, if possible, […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and General Tax Q&A and Form 8824 and Reporting Your Exchange and Calc_Q5 and Calc_Q6.
First are costs that are non-recurring and specifically related to the closing. Such costs can generally be paid for using exchange proceeds and will reduce the property’s net sales price for sellers or increase the net purchase price for buyers. A non-inclusive list of such costs includes:
Sales commissions
Title and escrow fees
Recording fees
Transfer Taxes
1031 Exchange Intermediary […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Section 121 Exemption and Form 8824 and Calc_Q5 and Calc_Q6.
Under IRC § 1014, upon death all property in the decedent’s estate is entitled to a stepped-up basis for purpose of calculating the heirs’ capital gain upon a subsequent sale. Under this rule, property is valued as of the date of the decedent’s death for purposes of determining its “basis,”without regard to when the property […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Tax Calculations and General Tax Q&A and Form 8824.
Cash or mortgage relief received in an exchange, the result of which is a taxable gain.
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Tax Calculations and General Tax Q&A and Form 8824 and All the Questions You Were Afraid To Ask About 1031s.
The taxpayer intending to defer the taxable gain on the exchange of investment property.
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Tax Calculations and General Tax Q&A and Form 8824 and All the Questions You Were Afraid To Ask About 1031s.
Let’s say, for example, that a taxpayer disposes of land and building property he has owned for six years with a value of $3 million and an adjusted basis of $1 million. He treated the entire building as section 1250 property for depreciation purposes. He then buys land and a building with a total value […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Tax Calculations and General Tax Q&A and Form 8824 and Reporting Your Exchange and 1031 Calc FAQs and Calc_Q2.
http://www.irs.gov/pub/irs-pdf/f8824.pdf
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Tax Calculations and General Tax Q&A and Form 8824 and Reporting Your Exchange and 1031 Calc FAQs.
Section (g) (4) of the IRS Section 1031 deferred exchange regulations requires a “safe harbor,” such as a Qualified Intermediary (QI), to facilitate the exchange. The QI helps ensure that the taxpayer does not actually or constructively receive the exchange proceeds anytime before receiving the replacement property, as is required for deferred gain treatment.
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Tax Calculations and General Tax Q&A and Form 8824 and Reporting Your Exchange and All the Questions You Were Afraid To Ask About 1031s.
No. However, any cash (equity) that is not reinvested in real estate will be taxable (and is known as cash boot).
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Form 8824 and Reporting Your Exchange and 1031 Calc FAQs and Calc_Q8 and All the Questions You Were Afraid To Ask About 1031s.