On August 1, 2014, we received a call from the exchange department of a national banking association. She had a client for whom she was facilitating a conventional exchange of real estate. The exchange accountexchange account had been opened on July 21, 2014, and the net proceeds from the sale of the ...
We were contacted by a potential client about doing an Internal Revenue CodeInternal Revenue Code
(IRC) §1031 tax deferred exchangedeferred exchange
. The client needed to acquire, or risk losing, the desired replacement propertyreplacement property
(new property) in Dillon, Colorado. However, the contract with his buyerbuyer
for the sale of his relinquished propertyrelinquished property
(old property) in Littleton, Colorado was not scheduled to close until November 28, 2014, a month after the date of closing for the new property. The purchase price for the new property was $562,000.
In a normal tax deferred exchange, or “forward exchange,” the taxpayertaxpayer
sells the relinquished property first and uses the exchange proceeds to acquire the replacement property. This situation, in which the taxpayer needs to take ownership of the new property prior to the sale of the old property, i.e. in a reverse sequence, is referred to as a “reverse exchange.”
IconX Energy* is one of the world's largest energy companies, providing customers around the globe with fuel for their automobiles, electricity for their homes and a wide range of petrochemical products for every phase of their lives. As with any large enterprise, IconX is constantly buying and selling large quantities of assets, and in the process, dealing with the complex tax implications of these activities.
IconX had historically employed 1031 like-kindlike-kind
exchanges (LKEs) for real estate and leasehold transactions, but several years ago company executives learned that LKEs could also be used for non-real estate assets - vehicles,...
Blue Jay Energy (BJE) focuses on the exploration, development and production of natural gas and crude oil in several regions of the United States. The company currently has proved reserves in excess of one billion cubic feet of gas equivalent and a reserve-to-production ratio of over 10 years.
As is common with energy exploration businesses, Blue Jay’s holdings include some underperforming fields. It recently decided to divest an oil and gas leasehold with tangible field machinery and equipment so that it could reinvest in properties it expected would generate greater yields.
The Problem William Smith purchased The Imperial Apartments in 1998 for $1.5M and he's been taking approximately $50,000 in depreciation deductionsdepreciation deductions against the property each year (27.5 year MACRSMACRS residential rental...
Accruit is seeing more and more California construction companies utilizing 1031 exchanges to sell off old equipment. These outdated assets don't meet California's strict new emissions laws so companies are buying new, greener replacement equipment.
Everyone agrees that going green is good for the environment, but the cost of doing so can take a bite out of a company's bottom line. For example, if a demolition company sells just one fully depreciated loader for $60,000, they're going to owe the IRS approximately $21,000 in taxes.
In other words, it's costing a lot of green to go green
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