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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.
If you deducted an incorrect amount of depreciation in any year, you may be able to make a correction by filing an amended return for that year. See Filing an Amended Return, next. If you are not allowed to make the correction on an amended return, you may be able to change your accounting method […]
Written by James Brennan on January 21st, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Tax Calculations and General Tax Q&A and Second Homes & Vacation Homes and Reporting Your Exchange and Calc_Q2.
If you qualify to deduct expenses for the business use of your home, you can claim depreciation for the part of your home that is a home office. Generally, the part of your home that is a home office is depreciated over a recovery period of 39 years using the straight line method of depreciation […]
Written by James Brennan on January 21st, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Tax Calculations and Section 121 Exemption and Second Homes & Vacation Homes and Reporting Your Exchange and All the Questions You Were Afraid To Ask About 1031s.
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.
Subdividing property will re-classify the land as “Dealer Property” which is not like-kind. The case on point is Margolis Vs. Comm. 337F2d 1001.
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 Consolidating or Diversifying? and Reporting Your Exchange and 1031 Calc FAQs and Calc_Q1.
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.
As an individual, you report the income and deductions for rental properties on page 1 of Form 1040, Schedule E, Supplemental Income and Loss. The total income or loss computed on Schedule E carries to Form 1040.
Report the depreciation of rentals on Form 4562: Depreciation and Amortization.
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 Tax Calculations and General Tax Q&A and Reporting Your Exchange.
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.