Skip to content
Facebook Twitter Instagram
Tax Services

Tax Services Solve Tax Problems ltd

  • For ClientsExpand
    • Buy Our Services
    • Access/ Submit Files Securely
    • Estimates
    • Make an Appointment
    • Make a Payment
    • Financial Calculators
    • Client Information Security
  • CategoriesExpand
    • Presentation
    • AssetsExpand
      • Inventory
    • Liabilities
    • Revenue
    • Financial StatementsExpand
      • Analyzing Risks And Problems
  • BookkeepingExpand
    • Bookkeeping and Payroll Price Estimation
    • Bookkeeping Services
    • Financial Calculators
    • Bookkeeping Software
    • Business Plan
  • Payroll
  • TaxExpand
    • Filing Income Tax Cost Estimation
    • Tax Services
    • Tax Resolutions
    • Business Tax Forms
    • Tax Deductions for a BusinessExpand
      • Meals and Entertainment Deduction Explained
    • Cryptocurrency Profit and Tax to the IRS
    • Like-Kind Exchanges
    • Partnership Income Calculator
    • Foreigners Investing in US Real Estate.
    • Sales Tax or Retail Sales Tax
    • Outsourcing CPAs And Tax Attorneys
    • Tax Calendar
    • Tax Preparation
    • Estimated Federal Taxes
    • Foreigners Investing In Real Estate In The USExpand
      • Tax Implications of Outsourcing
  • CalculatorsExpand
    • Net Income Calculator
    • Net Income (with Inventory) Calculator
    • Partnership Income Calculator
    • S-Corporation (With Inventory) Income Calculator
    • C-Corp (with Inventory) Income Tax and Dividend Income Calculator
    • Financial Planning
    • Tax Saving Strategy
    • Financial Planning via Retirement Accounts
    • Financial Calculators
    • Taxable Transactions CalculatorsExpand
      • Gain Through Sale
      • Like-Kind Exchange
      • Condemnation Gain Calculator
  • Order ServicesExpand
    • Buy Our Services
    • Bookkeeping and Payroll Price Estimation
    • Filing Income Tax Return Price Estimation
    • Resolve Owed Taxes
    • Set Up an Accounting Software
  • ContactExpand
    • Contact Us
    • Our Experience
    • Access/ Submit Files Securely
  • Accessibility
  • About Us
  • Our Experience
  • Check Our Background
Facebook Twitter Instagram YouTube Facebook Group
Tax Services
Tax Services Solve Tax Problems ltd
(888) 786-9829

Revenue

Revenue. Like-Kind Exchanges.

Home
Get Services Appointment

Need Help! Contact Today

Our All Services

  • Bookkeeping
  • Payroll
  • Tax
  • Business Plan
  • Inventory
  • Estimates
  • Financial Calculators
  • FREE Business Management Software

Calculate Estimation

  • Bookkeeping & Payroll Price Estimation
  • Income Tax Price Estimation

Contact

Email:?Tatiana@widetax.com

Phone:?+1 220-201-9381

Address:?341 S 3rd St #100-254 Columbus, OH 43215

As you already know, the Tax Cuts and Jobs Act removed personal property from the deferred tax treatment for like-kind exchanges. In most real-estate exchanges some amount of personal property is still included.

Likely, there is a proposed regulation that states that if the personal property was transferred together with the real estate and the aggregate FMV of the personal property is not more than 15% of FMV of the replacement real estate, then the personal property is INCIDENTAL. Read more about the incidental property treatment in Proposed Regulation Section 1.1031(k)-1(g)(7)(iii)

Example:

you are exchanging a $100,000 house with $15,000 of depreciable property for a $200,000 house. Since the $15,000 is only 7.5% of the basis of the property that you are exchanging for, the $15,000 is incidental.

Like-Kind Exchanges can be a complex transaction if you don’t learn it in detail.

Normally, usually, if you exchange one property for another and another property has a higher fair market value, you will be subject to income taxes (in addition to other taxes).

Likely, if you look at Section 1031 of the Code, you will see that you can postpone your gain recognition if your transaction is exchanging one property held for productive use for another like-kind property held for productive use. The difference in the fair market value is then preserved in the hands of the taxpayer by adjusting the basis of the property received.

There are many conditions that would be taken into the calculation of gain recognition, such as additional property and/ or cash received during the exchange.

If you look at https://www.law.cornell.edu/uscode/text/26/1031? you will see that… “No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or for investment.

Exception for real property held for sale
This subsection shall not apply to any exchange of real property held primarily for sale.

The requirement that property be identified and that exchange be completed not more than 180 days after the transfer of exchanged property For purposes of this subsection, any property received by the taxpayer shall be treated as property which is not like-kind property if?

(A)such property is not identified as property to be received in the exchange on or before the day which is 45 days after the date on which the taxpayer transfers the property relinquished in the exchange, or

(B)such property is received after the earlier of?
(i)the day which is 180 days after the date on which the taxpayer transfers the property relinquished in the exchange, or
(ii)the due date (determined with regard to extension) for the transferor?s return of the tax imposed by this chapter for the taxable year in which the transfer of the relinquished property occurs.”

Reference: https://www.law.cornell.edu/uscode/text/26/1031

Revenue or Sales

When recording or showing your revenues or sales on your Income Statement, make sure that you accounted for:

  • Occurrence

Make sure there are no fictitious customers

  • Completeness
  1. Make sure your company recorded ALL sales or revenues. Check for overstatement of sales or revenues by vouching and understatement of sales and revenues by tracing. Vouch financial statement amounts back to the original source or transaction to make sure your sales are not overstated. Trace your original sources documents transactions all the way to financial statements to make sure that your company sales are not understated, do not try to “even-out” sales, so there is “enough sales equally” for each year. For example, if there is an amount reported in journals, but there is no proof of the sale in supporting documents, where did the company get the client/customer to sell to? How was it paid? Call the “listed” customers and match the records. Do the clients even exist?
  2. Make sure that your company’s shipping documents match clients/customers’ billings, to avoid unrecorded Sales and Revenues.
  3. Completing Sales through banks is more reliable than if you record cash receipts. Remember, sources of your documentation are appropriate (relevant and reliable) if they come from outside, rather than from your company only.
  • Accuracy

Check that amounts match ledger recording, receipts, etc

  • Classification
  • Cutoff

It is important to record sales and revenues in the year when they occurred.

Search

Recent Tweets

Tweets by taxbookspayroll

Search

Recent Posts

  • Sale of Partnership Interest
  • Filing the K-2 and K-3 with 1065/1120-S
  • What Affects OIC
  • Recent Tax Related Charges and Tax Crimes
  • Taxability of Social Security Benefits/ Charitable Contribution Deductions

Categories

  • About Us
  • Assets
  • Bookkeeping
  • Business
  • C-Corp
  • Economy
  • Expenses
  • Financial Statements
  • Foreign Taxation
  • Income
  • Liabilities
  • Owner Equity
  • Partnership
  • Payroll
  • Revenue
  • S-Corp
  • Tax
  • Tax Planning
  • Tax Problems?
  • Uncategorized
  • Cookie policy (UK)
  • Cookie Policy (US)
  • Disclosure
  • Privacy and Policy
  • How To Use This Site
  • Access/ Submit Files Securely
  • About Us
  • Contact
  • Accessibility
  • QBO Advisor
  • 5-star Reviews on Google
  • 5-star Reviews On Freelancer
  • Chartered Economist
  • Insurance
  • IRS Resolutions
  • Quora Profile
  • Medium Profile
  • Accessibility
Facebook Twitter Instagram YouTube Facebook Group Vimeo
  • Cookie policy (UK)
  • Cookie Policy (US)
  • Disclosure
  • Privacy and Policy
  • How To Use This Site
  • Access/ Submit Files Securely
  • About Us
  • Contact
  • Accessibility

© 2023 Tax Services Solve Tax Problems ltd - WordPress Theme by Kadence WP

Popup Button
Manage Cookie Consent
We use cookies to optimize our website and our service. If you don't wish to be tracked, please, use an anonymous browser.
Functional cookies Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
Call Now Button
  • For Clients
    • Buy Our Services
    • Access/ Submit Files Securely
    • Estimates
    • Make an Appointment
    • Make a Payment
    • Financial Calculators
    • Client Information Security
  • Categories
    • Presentation
    • Assets
      • Inventory
    • Liabilities
    • Revenue
    • Financial Statements
      • Analyzing Risks And Problems
  • Bookkeeping
    • Bookkeeping and Payroll Price Estimation
    • Bookkeeping Services
    • Financial Calculators
    • Bookkeeping Software
    • Business Plan
  • Payroll
  • Tax
    • Filing Income Tax Cost Estimation
    • Tax Services
    • Tax Resolutions
    • Business Tax Forms
    • Tax Deductions for a Business
      • Meals and Entertainment Deduction Explained
    • Cryptocurrency Profit and Tax to the IRS
    • Like-Kind Exchanges
    • Partnership Income Calculator
    • Foreigners Investing in US Real Estate.
    • Sales Tax or Retail Sales Tax
    • Outsourcing CPAs And Tax Attorneys
    • Tax Calendar
    • Tax Preparation
    • Estimated Federal Taxes
    • Foreigners Investing In Real Estate In The US
      • Tax Implications of Outsourcing
  • Calculators
    • Net Income Calculator
    • Net Income (with Inventory) Calculator
    • Partnership Income Calculator
    • S-Corporation (With Inventory) Income Calculator
    • C-Corp (with Inventory) Income Tax and Dividend Income Calculator
    • Financial Planning
    • Tax Saving Strategy
    • Financial Planning via Retirement Accounts
    • Financial Calculators
    • Taxable Transactions Calculators
      • Gain Through Sale
      • Like-Kind Exchange
      • Condemnation Gain Calculator
  • Order Services
    • Buy Our Services
    • Bookkeeping and Payroll Price Estimation
    • Filing Income Tax Return Price Estimation
    • Resolve Owed Taxes
    • Set Up an Accounting Software
  • Contact
    • Contact Us
    • Our Experience
    • Access/ Submit Files Securely
  • Accessibility
  • About Us
  • Our Experience
  • Check Our Background
Skip to content
Search
Open toolbar Accessibility Tools

Accessibility Tools

  • Increase TextIncrease Text
  • Decrease TextDecrease Text
  • GrayscaleGrayscale
  • High ContrastHigh Contrast
  • Negative ContrastNegative Contrast
  • Light BackgroundLight Background
  • Links UnderlineLinks Underline
  • Readable FontReadable Font
  • Reset Reset