Tax Implications of a Like-kind Exchange

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• Section 1031, Like Kind Exchanges

  109121 Like Kind Exchanges Teresa calls you to discuss her latest tax planning ideas. At a cocktail party last night she was mesmerized by a discussion of like kind exchanges.

• Income tax liability: replacement property in a sale of land

  http://www.1031podcast.com/tax-exchange-basics/1031-rules-definition/ Like-kind property can be generally defined as investment property, but following are some examples: 'Examples of certified 1031 like-kind properties and like-kind exchanges:

• Tax effect of exchange of taxi business for limo service

  Based on this definition and the above information, the exchange is a like-kind exchange. Second, if a boot is received in a like kind exchange, gain must be recognized up to the boot received.

• Importance of Like-Kind Exchanges

  A like-kind exchange is an event whereby a taxpayer disposes of an asset and acquires a substantially similar asset without incurring an income tax liability.

• Book and Tax gain for Q&J, Inc. on recent sale of $533,000

  Second caveat is that the company cannot receive any cash in a like kind exchange, because cash is not like kind when trading investment properties.

• Tax planning scenarios for a like kind exchange

  A real like kind exchange could give Tucker property that is more suitable to his needs. Properly done, a like kind exchange under Starker rules would not trigger any taxable gain.

• Like-Kind Recognizing Gains

  548611 Like-Kind Recognizing Gains If there is a like-kind exchange of property between related parties, how long do they have to wait to dispose of the property received in order to avoid having to recognize any gain on the exchange?

• G&G exchanged an old asset plus cash for a new asset.

  If the new equipment is really worth $150,000, then the old asset must have had a trade in value (or fair market value) of $130,000. A. is false. B. This is a true statement because a real like-kind exchange reports no taxable gain. C.

• Looking a Gift Horse in the Eye, a S 1031 exchange.

  He must treat his exchange accordingly and not as a like kind exchange. According to the basic rules, his exchange does qualify as acceptable property.

• Calculate recognized and realized gain in like kind exchange

  She reports the smaller of her recognized gain or the non-like kind property received. For Liz, the like kind exchange had no benefit; in fact, it is a negative outcome.