Partnerships and 1031 Exchanges
Available Options for Partners and Partnerships (and LLCs)
Like any taxpayer, a partnership (and a limited liability company taxed as a partnership, generally referred to herein as a “partnership”) can engage in a like-kind exchange under IRC Section 1031 to defer paying tax on capital gains. Difficulties can arise, however, when the individual partners desire different outcomes with regard to the sale of property by the partnership. Some partners may wish for the partnership to stay together and do an exchange; others may want to do their own exchange with their portion of the property; still others may wish to receive cash and simply pay the tax. What alternatives are available to the partners? Read more…
New CA State Board of Equalization Board Decision Favorable for Drop & Swap and Swap & Drops
The California State Board of Equalization (Board) recently issued a favorable decision in an important Section 1031 exchange case. The Franchise Tax Board (FTB) has been very aggressive in auditing Section 1031 exchanges and disallowing exchanges involving a “drop and swap” or a “swap and drop.” The new Board decision should likely temper the FTB’s aggressive positions which are not consistent with established federal case law in the 1031 exchange area. Read More…
Exchange Facilitator Does Not Beat Missouri Use Tax On Learjet
Although the like-kind exchange is used heavily in real estate, there are other applications. Section 1031 applies to most property used in a trade or business or held for the production of income. One example is corporate jets. Even if they do not appreciate, they depreciate much less than the cost recovery deductions. So, selling a jet can cause significant depreciation gain recognition.
The like-kind exchange can be great for deferring tax on this gain. But what about sales and use tax? KCC Contractor, Inc. and John Q. Hammons Industries went before the Administrative Hearing Commission of the State of Missouri to address this issue. What they learned was that a transaction which qualifies for tax deferral under federal tax principles does not necessarily avoid sales and use tax. Read More…
IRS Provides Tax Relief for Disaster Situations
Tax Relief for Victims of Severe Storms, Tornadoes, Straight-line Winds and Flooding in Texas which occurred beginning May 4, 2015, may qualify for tax relief from the Internal Revenue Service.
Certain taxpayers may qualify for postponement of the exchange deadlines in Section 1031 if the relinquished or replacement property is located in a Presidentially-declared disaster area; or, if the principal place of business of a party to the transaction is located in a covered disaster area. Taxpayers can also qualify by satisfying other criteria. For updates or more information on all disaster areas, Visit the IRS: Tax Relief in Disaster Situations.
Asset Preservation would appreciate the opportunity to work with you on your next exchange regardless of how simple or complex. Give us a call at 800-282-1031 to open a 1031 exchange. To open a 1031 exchange online, email us at email@example.com.
API is committed to providing its exchange customers with unmatched service, and the highest level of security available in the 1031 exchange industry. From the customer’s first contact with an API representative, API’s professional exchange counselors, attorneys and accountants work together to meet the customer’s service needs in order to ensure a smooth transaction with no surprises. In the background, API’s management maintains tight financial controls and multi-layered security systems necessary to provide a level of comfort and performance quality relied on by sophisticated investors and corporate America; we call it the “The API Advantage™.”
The 20 Hottest U.S. Real Estate Markets in May 2015
The housing market is chugging ahead, with even higher home prices and more buyer activity—and in May, we’re seeing more than the ordinary seasonal uptick. Read more…
Attend A Complimentary 1031 Exchange Webinar For CPE Credit
Title: 1031 TAX-DEFERRED EXCHANGE ISSUES IN 2015
Presenter: Scott Saunders, Asset Preservation, Inc.
This one-hour webinar covers critical IRS time deadlines in deferred exchanges; like-kind requirements (including creative property variations like easements and personal property exchanges); partnership/LLC scenarios (and restructuring in advance of a 1031 exchange), reverse and improvement exchanges; related party transactions; how to avoid common pitfalls, and other 1031 exchange-related issues. This webinar will provide a summary of current developments regarding possible tax reform and the implications on 1031 exchanges. It also addresses applicable Revenue Rulings, PLRs, and other recent IRS guidance on current issues related to exchanges.
Date: Wednesday, July 15, 2015
Time: 8:00 a.m. – 9:00 a.m. (PST)
CPE Credits: 1.0 hour (Accountants & CPAs)
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Pack It Up, Pack It In: Where Is America Growing?
If you are looking for areas where U.S. population is rising significantly, just look to the South or West. Communities in those two regions dominate recent population growth trends, with a few exceptions. Read more…
1031 Exchanges Under Attack! Help Support the Real Estate Industry Now
Asset Preservation’s 25th Anniversary!
"It is with great pleasure (and a bit of shock) that I announce API’s 25th anniversary! In 1990, three of us started API as a subsidiary of Placer Title Company in Northern California. This was when there was very little 1031 activity compared to the activity we see now. In our desire to grow nationally, and to provide greater security for client exchange funds, we successfully sold the company to Stewart Title Company in 1993.
This is where the memory gets blurry. I spent approximately 12 years traveling the country. I attended countless Stewart conferences, meeting the incredible Stewart family of associates, from coast to coast. Many of those friendships continue to this day. I gave more presentations, classes and lectures on 1031 exchanges than I can remember, while meeting outstanding people with whom I still have the pleasure of working. Expanding API nationally also allowed me to see much of our beautiful country, an opportunity I most likely would not have had otherwise. It was the work of the young, and I highly doubt that I could repeat that performance today…"
To read the message in its entirety, Read Message from API’s Co-founder and President.
Happy 25th Anniversary API!