Discuss the circumstances when an investor can use section 1031 of the Internal Revenue Code (IRC) for like-kind of real estate exchanges to defer taxes when making a sale or disposal of property.
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- Discuss the circumstances when an investor can use section 1031 of the Internal Revenue Code (IRC) for like-kind of real estate exchanges to
defer taxes when making a sale or disposal of property.
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- In an agreement involving the right to acquire property, which of the following are conditions that must be met in order for the IRS to accept the purchase price set in the agreement as a valid measurement of the value of the property being acquired? The purchase price must be determined by an independent appraisal submitted with an informational gift tax return regardless of the value of the property. The agreement must be a bona fide business arrangement. The agreement cannot be an attempt to transfer the property to a family member for less than full and adequate consideration. The terms of the agreement must be comparable to those that would be entered into by persons in an arm's-length transaction A) I and III B) II and IV C) I and IV D) II, III, and IVWhich of the following payments made by tenant would NOT be included as consideration for property tax purposes? Select one: a. Rent. b. Refundable deposit. c. Management fee. d. Property tax.Which of the following is accurate regarding a real estate foreclosure transaction? A A foreclosure transaction can never involve recourse debt. B A foreclosure transaction can never involve nonrecoursedebt. C A foreclosure transaction has no federal income taxconsequences for the borrower. D A foreclosure transaction can have significant federalincome tax consequences for the borrower.
- If an individual purchases property insurance on business equipment, the premiums are deductible, but if that same individual purchases property insurance on his home, the premiums are nondeductible. explain this inconsistent tax treatmentPlease discuss the deductibility of real property taxes.1 Under Section 1031 a personal residence or an automobile used solely for personal purposes will qualify for a tax free exchange. T/F perty cannot be used by dealers in real property. T/F
- How important are taxes in the decision to sell a property?How can tax law changes create incentives for investors to sell their properties to other investors?Which is true regarding a like-kind exchange? Group of answer choices Personal-use assets qualify. Stocks and bonds qualify. Non like-kind property is considered “boot.” A taxpayer must elect for the like-kind provisions to apply.
- A property owner after payment of taxes received tax abetment due to his commitments to a local regulations, this will be handled by a. Estimated discount on property taxes b. Allowance for uncollectible property taxes c. No need for adjustment d. Allowance for property tax refundHow do taxpayers determine whether they should deduct their itemized deductions or utilize the standard deduction? Under what circumstances would you expect the after-tax return from an investment in a capital asset to approach that of tax-exempt assets (assuming equal before-tax rates of return)?Which of the following is a requirement for a taxpayer who wishes to claim the special allowance for rental real estate? They must: (a) Actively participate in the rental real estate activity. (b) Materially participate in the rental real estate activity. (c) Personally participate in the rental real estate activity. (d) Significantly participate in the rental real estate activity.