Thursday, May 15, 2008
Newsletters:- May 2006 Newsletter ... ...
The taxpayer and related party represented that they both would hold their replacement property for at least two years. This is similar to a previous PLR 200440002, which reached the same result. In this new ruling, however, the taxpayer represented that it was trying to obtain additional replacement property from an unrelated seller, and the taxpayer would pay tax on the cash received if the taxpayer was unable to find additional replacement property. The Service ruled that this taxable boot would not blow the whole related party exchange. - April 2006 - 1031 Exchange Newsletter ...
In January, 2005, the IRS released a Revenue Procedure that affects both IRC § 121 (relating to capital gains on the sale of a principal residence) and IRC § 1031 when both are involved with a single exchange of property. - March 2006 1031 Exchange Newsletter ...
One of our friends inquired the other day as to whether he could exchange his Scottsdale vacation home in which he lived approximately 35 to 40% of the time for another investment property because he believed that home was “held for investment.” The question raises several issues, and unfortunately there are few clear answers.
Under Section 1031, qualifying property must be held either for productive use in a trade or business or for investment. The Treasury Regulations do not define “held for investment,” although they provide that unproductive real estate held by a non-dealer for future use or future appreciation is held for investment.
Vacation homes may qualify as investment property if personal use is minimal, or if the home - January 2006 - Tax Exchange Newsletter ...
Sloan Bobrick Oldfield & Helsdon, P.S.
Electronic Newsletter
January 3, 2006
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Ladies and Gentlemen:
Happy New Year!
As we were in 2005, Sloan Bobrick Oldfield & Helsdon, P.S. is dedicated to giving you the latest real estate legal news from the Legislature and the Washington and Federal Courts, so that you can better serve your clients and yourselves in the coming year.
We have expanded our ability to give you the benefit of our legal knowledge.
This is our first installment of electronic newsletters for 2006.
Court of Appeals Protects Real Estate Partnership from Creditor
The Washington Court of Appeals decided, on December 1, 2005, when a judgment creditor can - November 2005 - 1031 Tax Exchange Newsletter ... ...
AN EXCHANGE – AND A PROFIT A recent Private Letter Ruling demonstrates an interesting way in which related parties may exchange timberlands and also take cash out of the overall transaction. - October 2005 - 1031 Tax Exchange Newsletter ... ...
The IRS has issued yet another hurricane notice (I.R. 2005-128) on October 27, 2005. Once again, as with the prior notices, the Service is granting to “affected taxpayers” a postponement of time to file returns, pay taxes, and perform other time-sensitive acts listed in Treas. Reg. §301.7508A-1(d)(1). As with Katrina and Rita, the extension runs until February 28, 2006. - August 2005 - 1031 Tax Exchange Newsletter ... ...
One of the recurring 1031 problems in hot markets such as we have now is the problem of how to characterize property that has been held by the taxpayer for only a short time, and then the taxpayer gets an offer to buy it that he cannot refuse. Can the taxpayer effect a 1031 exchange if he has only held it for a short period of time? Section 1031 states that a tax-free exchange is unavailable if the taxpayer has held the property as “stock in trade or other property held primarily for sale.” IRC § 1031(a)(2)(A). The term “primarily” means “of first importance” or “principally.” - June 2005 - 1031 Tax Exchange Newsletter ...
Property does not qualify for non-recognition under Section 1031 unless it has been held for productive use in a trade or business or for investment. Can a vacation home be "held for investment" under Section 1031, and if so, when? Neither Section 1031 nor the Treasury Regulations that provide a safe harbor for a Deferred Exchange define "held for investment." Instead, to answer this question, we have to look at a patchwork of various authority that has come down over the years. In Dewey v. Commissioner, TC Memo 1993-645, the Tax Court held that a two-week timeshare was not used for investment when used for vacation purposes by the taxpayer and family. - June 2005 - 1031 Tax Exchange Newsletter ...
Exchanges with Related Parties - what are the rules? If a taxpayer exchanges property with a related person and defers the recognition of gain under Section 1031, no gain is recognized if each related party holds its property for two years. Gain will be recognized if the taxpayer disposes of the replacement property or the related person disposes of the taxpayer's property within two years after the date of the last transfer that is part of the exchange transaction. - May 2005 - 1031 Exchange Newsletter ...
IRS ISSUES GUIDANCE ON LIKE-KIND EXCHANGE OF PRINCIPAL RESIDENCES – TAXPAYERS MAY RECEIVE CASH BOOT WITH NO TAX! In January, 2005, the IRS released a Revenue Procedure that affects both IRC § 121 (relating to capital gains on the sale or disposition of a principal residence) and IRC § 1031 when both are involved with a single exchange of property. - April 2005 - 1031 Exchange Newsletter ... ...
In January, 2005, the IRS released a Revenue Procedure that affects both IRC § 121 (relating to capital gains on the sale or disposition of a principal residence) and IRC § 1031 when both are involved with a single exchange of property. - March 2005 Newsletter ... ...
March is a wonderful month full of surprises. The weather is fickle and undecided whether to be winter or spring or somewhere in between. We have high hope that the Mariners with all their additions will surprise us with a winning season. Of one thing you can be certain: SB&OH will be here to serve you whenever you call. - February 2005 - 1031 Exchange Newsletter ...
Last month, rather than our usual SB&OH Exchange Accommodators newsletter, we sent the quarterly newsletter for Sloan Bobrick Oldfield & Helsdon, our law firm. It dealt primarily with exchange material and in particular included an article by me on the importance of meeting the 45 day identification rule. We hope you found that to be informative and beneficial. - 1031 Exchange Newsletter - January 2005 ...
Jeff Helsdon, a
partner at Sloan Bobrick Oldfield & Helsdon, P.S. greatly increases our
ability to do just that. Not only is Jeff a bonus to the law firm, but he is
the prime mover in the formation and operation of SB&OH Exchange
Accommodators LLC. He brings a whole new package of experience in real estate,
§ 1031 exchanges of real estate and personal property and knowledge of
land use and zoning issues to you. - December 2004 Newsletter - 1031 Tax Deferred Exchange ...
1031 exchange services by competent attorneys specializing in all phases of like kind exchanges. We will facilitate your residential, commercial or personal 1031 exchange anywhere in the United States. - 1031 Exchange Newsletter November 2004 ...
On October 22, President Bush signed HR 4520, the corporate tax bill, that includes a provision that restricts certain IRC § 1031 exchanges. Under this provision, a taxpayer who exchanges under IRC § 1031 into a rental house as a replacement property that is later converted into their primary residence, is not allowed to ... - 1031 Exchange Newsletter October 2004 ...
our exchange company, although independent, is also owned by the same folks who are principals of Sloan Bobrick Oldfield & Helsdon, P.S., a Tacoma law firm. They like to be known as a small firm with big experience. Obviously real estate and business law are important areas of their practice. They also, however, have an outstanding reputation resulting from a long-established successful practice in the areas of insurance defense, mediation and arbitration, personal injury law, insurance disputes, estate planning and probate and litigation. We recommend Sloan Bobrick Oldfield & Helsdon, P.S. be your first thought should any of these areas be of concern to you. - 1031 Exchange Newsletter - September 2004 ...
July turned out to be a record month for SB&OH Exchange Accommodators. More of you chose us to accommodate your exchanges than in any past month. We do sincerely thank you all for the confidence you have placed in us. - 1031 Exchange Newsletter - August 2004 ...
The summer has been most gratifying for SB&OH Exchange Accommodators. We have exceeded all of our expectations for business growth. The confidence you have placed in us is truly, very greatly appreciated and you can be assured we will do all in our power to continue to honor it. - 1031 Exchange Newsletter - July 2004 ...
Just over a year ago Jeff Helsdon joined Sloan Bobrick Oldfield & Helsdon, P.S. and at that time he was instrumental in establishing SB&OH Exchange Accommodators, LLC. As a follow up to the announcement of his joining the firm, Sloan Bobrick Oldfield & Helsdon is doing a newsletter of its own. Theirs will be a quarterly newsletter full of current and interesting law related information of interest to their clients and friends. The first, however, is an introduction of all the firm's attorneys. - 1031 Exchange Newsletter - June 2004 ...
For our newsletter for June – just for a change of pace, we thought you might enjoy this poem written by James Russell Lowell – appropriate for a fine first month of summer. Take a minute, sit back and enjoy! - 1031 Exchange Newsletter - April 2004 ...
April already! Today is the opening of the baseball season and we all wish success to the Seattle Mariners and the Tacoma Rainiers. Go Mariners! - 1031 Exchange Newsletter - May 2004 ...
April was a month of change at SB&OH Exchange Accommodators, LLC. Colby Parks, one of our young attorneys, left the firm to pursue other areas of practice. We wish him well on his journey as we are sure you do too. On a lighter side, our exchange coordinator and all round Person Friday (a "Girl" Friday is out) and as a matter of fact Person Monday, Tuesday, Wednesday and Thursday as well, Helen Alba, became Helen Reid through the process of marriage. You may have noticed her absence as she spent a little bit over a week on the garden island of Kauai. - 1031 Exchange Newsletter - March 2004 ...
Last month we wrote that although capital gains tax rates had been reduced, we strongly recommended that investors speak to their tax preparer before deciding whether or not a 1031 exchange is right for them. We noted that in addition to the capital gains tax, depreciation recapture also needs be considered. The depreciation recapture of 1250 property is at a rate of 25 percent; however, depreciation of 1245 property, which can be included in an exchange, is recaptured as ordinary income. Best advice – see your CPA. - 1031 Exchange Newsletter - February 2004 ...
It is also a time when the politics of our great nation heat up as the several presidential candidates vie for the public's approval. A key point among all of them, and rightly so, is taxes. The subject is uniform, the solutions are not. The question that particularly interests us is to know how capital gains on real estate held for business or investment purposes will be treated? - 1031 Exchange Newsletter - January 2004 ...
Happy New Year! We certainly hope you had a wonderful holiday with family and friends and are ready to start a fresh new year. All of us here are excited about the opportunity to serve you in 2004; both from SB&OH Exchange Accommodators, LLC to facilitate your 1031 exchanges and from Sloan Bobrick Oldfield & Helsdon, P.S. to serve you in areas of real estate, business, mediation, arbitration, estate planning and personal injury law.
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