1031_Exchanges

1031_Exchanges - PROPERTY EXCHANGES 1031 EXCHANGES 1 I....

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1 PROPERTY EXCHANGES 1031 EXCHANGES I. PROPERTY BASIS A. INITIAL BASIS UPON ACQUISITION 1. SALES PRICE OF PROPERTY 2. ASSOCIATED COSTS 3. CHECK WITH ACCOUNTANT RE: CAPITALIZED COSTS AND EXPENSES ASSOCIATED WITH CLOSING B. DEPRECIATION OF PROPERTY 1. IMPROVEMENTS ARE DEPRECIABLE 2. LAND IS NOT DEPRECIABLE (EXCEPT CERTAIN TIMBER, MINING, ETC.) C. CAPITAL IMPROVEMENTS AND BASIS ADJUSTMENT 1. CAPITAL IMPROVEMENTS INCREASES BASIS 2. DEPRECIATION ALLOWED 3. CHECK WITH ACCOUNTANT D. OPERATIONAL EXPENSES ARE DEDUCTIBLE E. REALIZE THAT ASSOCIATED (CLOSING) COSTS DRIVE UP THE BASIS AND YOUR COSTS FOR INVESTMENT PURPOSES II. SALE OR DISPOSAL OF PROPERTY A. GIFT (QUITCLAIM) 1. RECIPIENT MUST RECOGNIZE FMV AS A GAIN! 2. TALK TO ACCOUNTANT B. SALE OF PROPERTY 1. BASIS ADJUSTMENT FOR SALE 2. DEPRECIATION
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3. LAND C. CAPITAL GAIN RECOGNITION III. BASIC 1031 EXCHANGE RULES A. MUST REPLACE THE VALUE OF THE SALE B. TIME LIMITS C. IDENTIFICATION PERIOD 1. 45 DAYS FROM CLOSING OF RELINQUISHED PROPERTY 2. GENERALLY CAN IDENTIFY ONLY 3
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1031_Exchanges - PROPERTY EXCHANGES 1031 EXCHANGES 1 I....

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