Abstracts » Real estate industry

New Guidelines for Like-Kind Exchanges

Article Abstract:

Guidelines for an exchange of property or personalty with like-kind property or personalty were issued the by the Internal Revenue Service effective September 14, 2000. Under these rules, taxpayers can now structure a tax free like-kind exchange instead of selling an old, and acquiring a new, asset .

Statistical Data Included, Like-kind exchanges, Contracts, Powers and duties

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Basis in S corporations: back-to-back loans still don't work

Article Abstract:

Tax Court decision on the issue of whether back-to-back loans between related parties can be used to create debt basis is interpreted. Decision take in Oren v. Commissioner case settles the issue saying that in order to create a debt basis the shareholder must establish a direct loan arrangement. The following implications of the decision and analyzed as well.

Stockholder Suits, Company legal issue, Cases, Stockholders' derivative actions, Shareholder lawsuits, Debt financing (Corporations), Corporate debt

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Exchanges of mixed-use properties

Article Abstract:

The Internal Revenue Service (IRS) has set certain guidelines for the taxpayers. The new procedure is unique in how it applies the exclusion rules before deferral rules. In an appreciating real estate market, taxpayers can minimize recognition of gain by taking advantage of both the exclusion and deferral provisions under Sections 121 and 1031 respectively. Section 1031 is only necessary if the gain on the sale would exceed the maximum exclusion under Section 121 or if depreciation deductions have been taken on the property.

Government regulation (cont), Government regulation, Taxes, Joint occupancy of buildings, Multipurpose buildings, Hold harmless agreements

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