Replacing property that is converted can defer taxable gains

Article Abstract:

Taxable awards for the conversion of property resulting from situations beyond the control of a taxpayer can be deferred through proper investment in replacement property. An involuntary conversion can qualify for nonrecognition treatment if it meets the requirements of Section 1033. Provisions of this section call for the property to be converted into either another property with similar use or service; or a nonsimilar property, with the taxpayer electing to defer gain through the acquisition of replacement property or controlling stock in a corporation owning a property that qualifies as replacement to the original property.

Real property exchanges, Laws, regulations and rules, Capital gains tax

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Change for sole proprietorship to a corporation may result in unexpected tax

Article Abstract:

The change from a sole proprietorship to a corporation can have a major effects on a businesses tax position. The non-tax factors associated with incorporation include limited liability, continuous existence, and the expansion of business. The Tax Reform Act of 1986 changed many of the tax rules relating to corporations and sole proprietorships. The new tax rules affect: corporate tax rates; liability treatments; and basis results. Changes have also affected: medical plans; disability benefits; and life insurance plans.

Incorporation

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Selling a residence: current opportunities for deferring or eliminating tax on gain

Article Abstract:

Taxes on the sale of residential dwellings can be deferred, under Section 1034 of the Internal Revenue Code, when the home seller is less 55 years of age. However, the seller must also buy a replacement dwelling. Section 121 allows the taxpayer to protect as much as $125,000 from a realized gain.

Methods, Planning, Housing, Accounting and auditing, Tax planning, Real estate, Dwellings, Real property, Tax shelters

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