Liabilities in section 1031 exchanges

Article Abstract:

The author discusses the tax treatment of liabilities attached to real property in the context of IRC section 1031exchanges. Tax-free treatment may be denied to the extent of liabilities extinguished in exchanges. The author examines several possible situations, including those with uncertain results.

Liabilities (Accounting), Like-kind exchanges, Extinguishment of debts, Debt cancellation

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Closing agents in Section 1031 exchanges

Article Abstract:

The author discusses the potential problem of the use of lawyers as closing agents in IRC section 1031 real property exchanges. Lawyers could be considered agents of their clients resulting in constructive receipt of the properties by the clients with resultant gain recognition.

Management, Attorneys, Lawyers, Tax consultants

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Related party exchanges - an examination of Technical Advice Memorandum 9748006

Article Abstract:

The IRS in Technical Advice Memorandum 9748006 provided controversial but correct guidance regarding tax-free related party property exchanges under IRC section 1031(f). The IRS took the opinion that section 1031(f) should be applied to ensure recognition of gain in structured related-party transactions utilizing intermediaries where lack of such intermediaries would result in gain recognition. The section disallows tax-free treatment of exchanges of high-for-low basis property with subsequent sale of the initially low basis property.

Related party transactions

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