Paul asks…Tax problem - like-kind exchange of stocks and bonds?Melvin receives stock as a gift from his uncle. The adjustedd basis of the stock is $14,000 and the fair market value is $20,000. Melvin trades the stock for bons with a fair market value of $17,000 and $3,000 cash. What is his recognized gain and the basis for the bonds?
a. $0, $11,000
b. $0, $17,000
c. $3,000, $14,000
d. $6,000, $17,000
e. None of the above.
I think that stocks and bonds can't be traded so the answer is E. Anyone agree or disagree?admin answers:You're
Monday, February 28, 2011
Your questions about 1031 exchange
Lisa asks…Can an LLC or S-corp realestate investment co do 1031 Exchange?I have been buying realestates and have held the property under an S-corp or LLC. I am planning to sell and then do a 1031 exchange. Can LLC/S-corp do this? I have done it in the past as an individual person, but not sure if the IRS allows a corporation/LLC investment firm to keep on deferring the gains.admin answers:Yes, as long as ownership stays the same. ABC corp sells, ABC corp needs to purchase. Dissolving entities or changing ownership before selling or
Sunday, February 27, 2011
Your questions about investment property
Ken asks…is it possible to get a HELOC on an investment property that you only own 35% of the equity?I have 35 percent equity in on on property and i have invested 50,000. I want to get some type of home equity line of credit on that particular investment property so i can reuse to funds if some other deal were to come up.. Does anyone know if it is possible and if it is what banks do this? Any advice would be greatly appreciated.admin answers:As long as you own under 10 properties it should be easy.
Email me if you have
Email me if you have
Your questions about tax-deferred exchange
Susan asks…how can tax deferred exchanges save a seller tax on a sale of income property?admin answers:It saves tax because the tax is deferred to a future period. Time value of money. Money now is worth more than money at a future point when you sell the deferred item.Robert asks…USA Tax Expert Needed, 1031 Exchange Question?Origianl question: http://answers.yahoo.com/question/index?...
I received three answers to that question which disagree. I think that is because I did not state my question clearly. Here is a better effort: I own a
I received three answers to that question which disagree. I think that is because I did not state my question clearly. Here is a better effort: I own a
Saturday, February 26, 2011
Your questions about like kind exchange rules
Chris asks…Opening up our relationship in college?I've been with my gf for 7 months (she's 20, I'm 21). We're both really sexual, and had sexual histories when we got together. She was never the hook up type, or so she claims, although she's by far the horniest girl I've ever met.
We've both been faithful to each other, and up until very recently she's claimed to not even be comfortable picturing another man inside her.
We've both begun college as freshmen this semester. I'm going the community college route to start, but she's going to
We've both been faithful to each other, and up until very recently she's claimed to not even be comfortable picturing another man inside her.
We've both begun college as freshmen this semester. I'm going the community college route to start, but she's going to
Your questions about relinquished property
Joseph asks…can i have an affidavit of desistance that he/she waives his/her right/relinquish hi/her right over a propertydo we have a format, re: affidavit of desistance/waiver of right. this pertains to the certificate of registration of our toyota altis in the name of my sister and my brother. my brother wants to waive his right as a co-owner to the said vehicle, thus he wants that his name be automatically remove and give its sole ownership to my sister. i want to know the exact wordings of said affidavit of desistance/waiver of right as
Friday, February 25, 2011
Your questions about qualified intermediary
Carol asks…Does my friend have legal recourse against a mortgage company/Government Sponsored Agency?A few years back, a friend of mine applied for the first home club (a government program that allows first time homebuyers to open a savings account, save for a specified period of time, take homebuyers education, and then receive a grant from the FHLBNY for $7500 towards the downpayment or closing costs of your first home) and was approved based on his income. In order to be approved, you had to be no more than 80% of the median income of
Your questions about 1031 exchange
Sandy asks…Can you make a 1031 exchange FROM a rental to a RESIDENCE in California?I rented my residence for seven years because I was living out of the country. Now I must move to another city. Can I live in the building purchased by the 1031 exchange, or must I rent it out?admin answers:A 1031 exchange must be for like-kind, with all of the money from the one you are selling going into the new like-kind property. So, no you can't exchange for a personal residence, but you can exchange for one that you intend to rent. So rent it for a
Your questions about investment property
Michael asks…What should be considered in buying investment property in Alaska?We are considering buying land in Alaska for investment or building in summer house in the future. What factors should we consider in buying this property?admin answers:I would assume they would be pretty much the same as anywhere you buy an investment property. Location, Location, Location!
1. Renter to Owner Ratio
Basically, you want to find a neighborhood that has more owners than renters.
2. Types of Businesses
Places like Target, Walgreens, Home Depot and
1. Renter to Owner Ratio
Basically, you want to find a neighborhood that has more owners than renters.
2. Types of Businesses
Places like Target, Walgreens, Home Depot and
Thursday, February 24, 2011
Your questions about like kind exchange rules
Laura asks…I just got 200 dollars from a manager at the company I work for... QUESTION!?Okay... so just a tiny background check, I am only 20 years old. I sorrrt of recentlylanded this REALLY awesome job at a nice company in the office. There are only 4 people in the office and a few managers that work at my location... they've all been working there 5+,10+, 20+ years and they're pretty much like family. I have only been working there 7 months now and I'm just starting to feel settled in.Anyway,I am pretty good friends with the service
Wednesday, February 23, 2011
Your questions about investment property
Paul asks…What are the downpayment guidelines when buying a multi-unit investment property?Is it different from a primary home? I am interested in an apartment building to purchase as an investment. What are the guidelines for downpayments on an investment property. Is it the same as a primary home? I have heard that it is not the 10-20% minimal downpayment because if all/most of your units are occupied, this is taken into consideration. Websites are appreciated too. Thanks for your help.admin answers:It'd depend on how much the bank
Your questions about tax-deferred exchange
Joseph asks…1031 Tax-Deferred Exchange Question?Hello and thanks in advance.
Scenario:
"John" is a first time home buyer (primary residence, lives alone, 30-yr traditional loan) who may want to move in a few years. Call it House A.
John wants to move into another property (House B) and "convert" it to his primary residence while renting out House A.
Questions:
Can House A be deemed a rental property? If so can John then use a 1031 tax exchange and exchange House A for another rental property (House C) whenever he wants to make the
Scenario:
"John" is a first time home buyer (primary residence, lives alone, 30-yr traditional loan) who may want to move in a few years. Call it House A.
John wants to move into another property (House B) and "convert" it to his primary residence while renting out House A.
Questions:
Can House A be deemed a rental property? If so can John then use a 1031 tax exchange and exchange House A for another rental property (House C) whenever he wants to make the
Tuesday, February 22, 2011
Your questions about 1031 exchange
James asks…Is it possible to do a 1031 exchange on a property which I plan to sell with lease-option / owner financing?I have a property/home in which I am putting on the market. If I sell the property on a lease-option to buy or owner financing, would I still be able to do a 1031 exchange? If so, then how and when (upon signing the contract or pay-off (2 years))?
Please include details in your answer.
I can also add details if more info is needed to the question.admin answers:I believe 1031 status takes effect when the 1031 trustee
Please include details in your answer.
I can also add details if more info is needed to the question.admin answers:I believe 1031 status takes effect when the 1031 trustee
Your questions about relinquished property
Steven asks…Should the people who believe taking the Native American's land is right relinquish their land/property?Just wonderingadmin answers:Like I do, most of the time, I am not going to read the other answers until I have my say. That way I am not influenced by other answers. Having said that I say NO, they should not give up their property now. The owners today were not involved in any decision over a hundred years ago where the Native Americans land was stolen. They are not to be punished for the sins of their fathers. If only
Monday, February 21, 2011
Your questions about qualified intermediary
Maria asks…Conservatives: What do you think of Obama's proposal to require tax withholding on all payments to NQIs?NQIs = non-qualified intermediaries as described in the treasury regulations under section 1441 of the Internal Revenue Code.
Do you agree with the proposal or not? It's an important part of Obama's tax plans. I'm sure you're familiar with it, as you profess to know so much more than we stupid liberals do about finance and taxation.
http://www.treas.gov/offices/tax-policy/library/grnbk09.pdf
Thomas--Interesting theory. The
Do you agree with the proposal or not? It's an important part of Obama's tax plans. I'm sure you're familiar with it, as you profess to know so much more than we stupid liberals do about finance and taxation.
http://www.treas.gov/offices/tax-policy/library/grnbk09.pdf
Thomas--Interesting theory. The
Your questions about section 1031
Sharon asks…Ap History questions about the cold war?THE COLD WAR
1945-1991
Chapter 21
Section 109
Pages 866-884
The Opening Decade 1945-1955 and the Marshall Plan:
1.How was science perceived as a serious threat?
2.What was (and continues to be) a roadblock in the Security Council?
3.“The United Nations failed…” Yes, but how did it succeed?
4.Why did the USA take it upon itself to become the global cop?
5.Name 4 examples of distrust between the Soviets and the West.
6.What was the “Iron Curtain?”
7.What was the “containment
1945-1991
Chapter 21
Section 109
Pages 866-884
The Opening Decade 1945-1955 and the Marshall Plan:
1.How was science perceived as a serious threat?
2.What was (and continues to be) a roadblock in the Security Council?
3.“The United Nations failed…” Yes, but how did it succeed?
4.Why did the USA take it upon itself to become the global cop?
5.Name 4 examples of distrust between the Soviets and the West.
6.What was the “Iron Curtain?”
7.What was the “containment
Sunday, February 20, 2011
Your questions about replacement property
Nancy asks…Do replacement windows always add value to a property?I am a widow with a three bedroomed sixties house with original windows. I am not sure whether I am going to stay here but will certainly do so for the next two years until I retire. The windows are OK but not brilliant. Is it worth spending the money to replace them.admin answers:Is it that you think that the windows are not atheistically pleasing
or is it that you feel that you would get more for your property if you replaced them.
You really need to consider the outlay
or is it that you feel that you would get more for your property if you replaced them.
You really need to consider the outlay
Your questions about 1031 exchange
Paul asks…If I buy an investment property through 1031 exchange, what happens if I move in to the unit?I bought a rental property lthrough 1031 exchange last year in another town, but now want to move there to live. What are the tax implications? Will I have to pay the deferred capital gains taxes?admin answers:No tax due when you move in. But you will not get the 250,000/500,000 capital gain exemption when you sell it unless you live there for 5 years. This is longer than the normal 2 year rule for getting a home sale exemption from
Saturday, February 19, 2011
Your questions about like-kind exchange
Charles asks…How do you calculate a gain?Charles owns a farm that he purchased for investment purposes several years ago. The purchase price was $36,000.00. Now he is interested in getting a condominium at the beach which he will rent out most of the time.
(a) If he sells the farm outright for $55,000.00 cash, how much gain will he recognize?
(b) If he sells the farm for $55,000.00 cash, and thereafter purchases a condominium, how much gain will he recognize? Why?
(c) If he trades the farm for a condominium worth $55,000.00 that cost
(a) If he sells the farm outright for $55,000.00 cash, how much gain will he recognize?
(b) If he sells the farm for $55,000.00 cash, and thereafter purchases a condominium, how much gain will he recognize? Why?
(c) If he trades the farm for a condominium worth $55,000.00 that cost
Friday, February 18, 2011
Your questions about section 1031
Linda asks…Can water rights be exchanged under a section 1031 like-kind exchange?-S corporation wants to exchange commercial real estate in Ft Collins, Colorado for Water right from a unrelated third party. Both are worth 500,000. Can this qualify as a 1031 exchange?admin answers:As a 1031 Accommodator with First American Exchange Company, one of the country's largest 1031 Accommodators, let me answer your question more fully.
The big question here is does the State of Colorado recognize water rights as real property? If so, then you
The big question here is does the State of Colorado recognize water rights as real property? If so, then you
Your questions about section 1031
Susan asks…Can water rights be exchanged under a section 1031 like-kind exchange?-S corporation wants to exchange commercial real estate in Ft Collins, Colorado for Water right from a unrelated third party. Both are worth 500,000. Can this qualify as a 1031 exchange?admin answers:As a 1031 Accommodator with First American Exchange Company, one of the country's largest 1031 Accommodators, let me answer your question more fully.
The big question here is does the State of Colorado recognize water rights as real property? If so, then you
The big question here is does the State of Colorado recognize water rights as real property? If so, then you
Thursday, February 17, 2011
Your questions about investment property
Nancy asks…investment property?I really want to buy a rental investment (like duplex) and I need some guidance:
1. Should I form an LLC to protect my potential lawsuit and purchase that rental property under that LLC? can I avoid an LLC due to fees/costs?
2. I am in CA and looking out 3 different areas: Austin TX, Vegas NV, or Raleigh-Durham NC. Which one do you think I should look into in terms of long-term investment (at least 7 years) and taxes/fees consequences
Thanksadmin answers:I'm an agent out in Las Vegas, and boy is it a buyer's
1. Should I form an LLC to protect my potential lawsuit and purchase that rental property under that LLC? can I avoid an LLC due to fees/costs?
2. I am in CA and looking out 3 different areas: Austin TX, Vegas NV, or Raleigh-Durham NC. Which one do you think I should look into in terms of long-term investment (at least 7 years) and taxes/fees consequences
Thanksadmin answers:I'm an agent out in Las Vegas, and boy is it a buyer's
Your questions about investment property
Helen asks…investment property?I really want to buy a rental investment (like duplex) and I need some guidance:
1. Should I form an LLC to protect my potential lawsuit and purchase that rental property under that LLC? can I avoid an LLC due to fees/costs?
2. I am in CA and looking out 3 different areas: Austin TX, Vegas NV, or Raleigh-Durham NC. Which one do you think I should look into in terms of long-term investment (at least 7 years) and taxes/fees consequences
Thanksadmin answers:I'm an agent out in Las Vegas, and boy is it a buyer's
1. Should I form an LLC to protect my potential lawsuit and purchase that rental property under that LLC? can I avoid an LLC due to fees/costs?
2. I am in CA and looking out 3 different areas: Austin TX, Vegas NV, or Raleigh-Durham NC. Which one do you think I should look into in terms of long-term investment (at least 7 years) and taxes/fees consequences
Thanksadmin answers:I'm an agent out in Las Vegas, and boy is it a buyer's
Wednesday, February 16, 2011
Your questions about what is a 1031 exchange proceeds
Daniel asks…How is a 1031 exchange of residential property accted & reported to the IRS? sale, deprec., and improvements?The original property was sold at a gain, but I was advised that all proceeds had to be rolled iinto the exchange-what happens to gain, basis, improvements etc.?admin answers:In a like kind exchange, no gain is currently recognized and your basis in the original property will roll over to the new property you received in exchange. However, if you received something else in addition to the new property (i.e. you gave
Your questions about what is a 1031 exchange proceeds
Mark asks…How is a 1031 exchange of residential property accted & reported to the IRS? sale, deprec., and improvements?The original property was sold at a gain, but I was advised that all proceeds had to be rolled iinto the exchange-what happens to gain, basis, improvements etc.?admin answers:In a like kind exchange, no gain is currently recognized and your basis in the original property will roll over to the new property you received in exchange. However, if you received something else in addition to the new property (i.e. you gave up
Your questions about like-kind exchange
Richard asks…Capital Gains on Rental Property and 1031 exchange.?Can I sell my rental, move my renters into my primary residence (we'll be moving out) and make that my new rental property. Can I then take the profit from the sale of my rental and put it towards the mortgage on my old primary residence, which is now the new rental property, and avoid capital gains on the profit since it is going toward a 1031 like-kind exchange? Also, if we sold that home within 5 years could we avoid capital gains on that sale as well? answers:Capital
Your questions about like-kind exchange
Daniel asks…Capital Gains on Rental Property and 1031 exchange.?Can I sell my rental, move my renters into my primary residence (we'll be moving out) and make that my new rental property. Can I then take the profit from the sale of my rental and put it towards the mortgage on my old primary residence, which is now the new rental property, and avoid capital gains on the profit since it is going toward a 1031 like-kind exchange? Also, if we sold that home within 5 years could we avoid capital gains on that sale as well? answers:Capital Gains
Tuesday, February 15, 2011
What is a 1031 Exchange?
One comes across terminologies such as 1031 exchange, tax deferrals etc at the time of researching for purchasing a new home. At this time he will start asking questions such as ""what is a 1031 exchange and do I qualify?”. Answers for this question are available in abundance if one looks for it. This article makes an attempt to briefly answer these questions. Although this article will educate the interested reader on this type of exchange this is not exhaustive and the interested person has to consult 1031 experts in this field to get
Your questions about like-kind exchanges
Chris asks…What are the differences and similarities between like-kind exchanges and involuntary conversions? How are eacWhat are the differences and similarities between like-kind exchanges and involuntary conversions? How are each calculated? answers:About the only similarity is that they both involve disposal of property. Maybe a couple of quick examples would explain them.
Involuntary conversion: Your house burns to the ground. You take the insurance money and don't build another one. It's treated as if you sold your home. Whether
Involuntary conversion: Your house burns to the ground. You take the insurance money and don't build another one. It's treated as if you sold your home. Whether
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