Replacing condemned real estate

Article Abstract:

Section 1033(a)(2) of the 1986 Internal Revenue Code essentially states that gain on involuntary property conversion can be omitted from gross income if other property "similar in use" to the converted property is acquired by the taxpayer. Losses are charged at the time of acquisition and there is recognized gain if the replacement property costs less than the amount realized on the converted property. The IRS and the courts have dissimilar interpretations on like-kind exchanges. Due to this disparity, taxpayers should be careful when attempting to change condemned real estate.

Analysis, Like-kind exchanges, Real property tax, Real property taxes

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The recharacterization of transactions between corporations and shareholders

Article Abstract:

A corporation is one of several legal vehicles under which a real estate investor may operate. Corporations fall under the doctrine of "constructive dividends" which holds shareholders liable for taxes on dividends even when not formally declared and distributed. Several types of transactions not at arms length or for fair market value are held to be constructive dividends when economic benefits ensue to the shareholder.

Real Estate, Real Estate and Rental and Leasing, Tax law, Finance, Corporate taxes, Dividends, Corporations

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Sales of real estate investments for a loss: tax considerations

Article Abstract:

The interpretation of the laws pertaining to the taxation of losses incurred on the sale of real estate in the United States is presented.

United States, Legal issues & crime, Government regulation (cont), Government regulation, Taxes, Legal/Government Regulation, Laws, regulations and rules, Tax policy, Statutes

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