You’ve Got Some ‘Splaining to Do! - 05/27/10 10:17 AM
In the hit show I Love Lucy, Ricky Ricardo was known for saying “Lucy, you’ve got some ‘splaining to do!” in his memorable Cuban accent. With 1031 exchanges the ‘splaining is done by substantiating your tax positions with other financial and Tax documents. The best case of substantiating comes with residential rental property, a subject we want to address before Memorial Day in honor of summer.
The Tax Court recently ruled the sale of a vacation home and the purchase of another via 1031 exchange ineligible because the homes were not held for investment (Moore, TC Memo 2007-134). It is common … (0 comments)

How Net Lease Zeros Add Up to Big Tax Savings - 05/12/10 01:20 PM
Simply speaking a zero transaction is the acquisition of a property using a highly leveraged loan (loan to value usually 88% plus) with all rental income dedicated towards debt service, thus producing “zero income” for the property owner. One of the vehicle’s applications is to defer tax liabilities incurred in a commercial foreclosure.
The Problem
Though it is not widely known, the foreclosure of a commercial property is often a taxable event. How the IRS computes the tax depends on whether the property was financed with a recourse or non-recourse loan. In the case of a recourse loan, tax liability … (0 comments)

 

James Brennan, JD/LLM, 1031 Exchanges

Washington, DC

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ES Group

Address: 11150 Sunset Hills Rd., Suite 300, Reston, VA, 20190

Office Phone: (703) 801-4178

Cell Phone: (703) 801-4178

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