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We partner with your CPA.
Your CPA is frequently the most important part of your
IRC § 1031 Exchange. Notifying the CPA well in advance
of an anticipated exchange will make your tax filings much
easier. Your CPA is familiar with your business circumstances
and transaction specifics. This information helps to determine
if an exchange is worthwhile. These factors include:
- The
current basis of the property
- Write-offs
that will reduce tax liability
- Eligibility
of the property for an exchange
The
CPA looks for immediate tax exposure in the transaction, including
cash, relief of debt and issues of "non-like-kind"
property. Investors frequently focus on the cash equity realized
from the transaction and ignore issues such as relevance of
indebtedness. The CPA also looks at alternative methods of
tax mitigation, which might not otherwise be obvious from
the transaction. Remember, your CPA is an integral part of
your tax planning and should always be consulted with respect
to IRC § 1031 Exchanges
and other tax related transactions.
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