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Principles of tax-deferred exchanging
Jo Kline Cebuhar Manufacturer: The X. Press ProductGroup: Book Binding: Unknown Binding ASIN: B0006QDH12 |
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Average customer rating: 
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Principles of Tax-deferred Exchanging
Manufacturer: The X.Press ProductGroup: Book Binding: Spiral-bound  General
| Taxation
| Law
| Subjects
| Books
ASIN: 0966185102 |
Book Description
Have you successfully executed a tax-deferred exchange of property? Or have you heard of tax-deferred exchanging but don't really understand how it can work for you? Either way, you'll find answers to your exchange questions in Principles of Tax-deferred Exchanging. When a taxpayer sells an asset that has been held for business or investment purposes, capital gains taxes are due and payable. There are two kinds of taxable gain: the "appreciation" that the property has earned while owned by the taxpayer (roughly the difference between the original purchase price and the sales price) and the "recapture of depreciation" (the repayment of depreciation deductions previously taken by the taxpayer). However, the Internal Revenue Code allows a taxpayer to defer, or delay, the payment of all capital gains taxes if the property is exchanged for other business or investment property and the taxpayer re-invests all cash proceeds in the replacement property. Your first thought may be: how can I find someone to trade properties with me? The good news is that modern exchanging does not require the taxpayer to find another person with whom to swap. With the use of a Qualified Intermediary, the taxpayer can transfer property to any buyer, acquire new property from any seller, and get the same tax treatment as if he or she had swapped properties with one other person. It's one of the few areas of the tax code that is new and improved! The U.S. Treasury Department provides regulations, or rules, which expand on the Internal Revenue Code and provide many of the nuts and bolts methods of complying with that Code for taxpayers and professionals. In 1991, the regulations that specifically address tax-deferred exchanging under Code Section 1031 were dramatically changed to provide detailed rules for the documentation and execution of exchanges. Any book on exchanging published prior to the adoption of those rules in 1991 does not include these many rules and guidelines. First published in 1996 and updated in 1997 to include The Taxpayer Relief Act of 1997, Principles of Tax-deferred Exchanging does include all those rules and regulations, if you want to read them. But mostly it speaks plain English on how to successfully execute a tax-deferred exchange.Customer Reviews:
veryinformative ideas for tax savings.......1998-12-30
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