What the deferred exchange regulations forgot to tell you: can you do a reverse Starker exchange?
Article Abstract:
Taxpayers entering into reverse Starker exchanges are taking tax risks. Neither the Starker case nor IRC 1031's 1984 amendments authorize these exchanges. A parking transaction is a variant on the pure reverse Starker exchange which the IRS could question by maintaining that the parking party is the taxpayer's agent and the taxpayer is in constructive receipt of the property. If that party and the taxpayer are related, there could be an IRC 1031(f) violation. An option or a lease option would cut down on task risks and be much safer.
Publication Name: Journal of Real Estate Taxation
Subject: Real estate industry
ISSN: 0093-5107
Year: 1993
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Tax fraud and deferred section 1031 exchanges
Article Abstract:
Fraudulent documentation of records made to comply with IRC like-kind exchange section 1031 requirements can result in criminal issues as in the Tax Court case of Dobrich v. Commissioner. The Dobrich taxpayers did not identify and acquire replacement property within statutory time limits, but fraudulently altered documents to show that they did. Criminal prosecution resulted in a guilty plea and the Tax Court imposed a substantial civil penalty.
Publication Name: Journal of Real Estate Taxation
Subject: Real estate industry
ISSN: 0093-5107
Year: 1998
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- Abstracts: What the deferred exchange regulations forgot to tell you. What the deferred exchange regulations forgot to tell you - what is a prohibited basis-shifting transaction?
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