Discuss the circumstances when an investor can use section 1031 of the Internal Revenue Code (IRC) for like-kind of real estate exchanges to defer taxes when making a sale or disposal of property.
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- Discuss the circumstances when an investor can use section 1031 of the Internal Revenue Code (IRC) for like-kind of real estate exchanges to
defer taxes when making a sale or disposal of property.
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- Which of the following accurately describes the tax implications of investing in real estate and rental properties? a) Real estate investments are not subject to taxation. b) Rental income is tax-exempt. c) Rental income is subject to taxation, and expenses related to real estate investments may be deductible. d) Rental income is taxed at a fixed rate determined by the IRS.Access and examine section 17 of the Income Tax Act of Jamaica,then perform the following tasks:1. Distinguish between a fictitious transaction and an artificialtransaction2. Outline the anti-avoidance provisions as they relate to:•the transfer of property to a child, a trust, or a connected person•dealings in securityWhich is true regarding a like-kind exchange? Group of answer choices Personal-use assets qualify. Stocks and bonds qualify. Non like-kind property is considered “boot.” A taxpayer must elect for the like-kind provisions to apply.
- How do IRS regulations affect leasing decisions?What are the general requirements regarding income, investments, and dividends with which a REIT must comply to maintain its tax-exempt status?Which of the following payments made by tenant would NOT be included as consideration for property tax purposes? Select one: a. Rent. b. Refundable deposit. c. Management fee. d. Property tax.
- When is a receivable recognized for property tax assessments? When is the revenue recognized?Compare and contrast the basis of property acquired via purchase, conversion from personal use to business or rental use, tax-deferred exchange, gift, and inhertiance.Which of the following is accurate regarding a real estate foreclosure transaction? A A foreclosure transaction can never involve recourse debt. B A foreclosure transaction can never involve nonrecoursedebt. C A foreclosure transaction has no federal income taxconsequences for the borrower. D A foreclosure transaction can have significant federalincome tax consequences for the borrower.
- What guidelines must be followed to classify a transaction as associated with the principal of an estate or as an income transaction? Select one: a.The decedent's intentions or state laws b.Generally accepted accounting principles c.The Internal Revenue Code d.State estate laws e.Federal estate lawsThe IRS does not have the authority to: a.Summon taxpayers to make them appear before the IRS. b.Summon third parties for taxpayer records. c.Examine a taxpayer's books and records. d.Place a lien on taxpayer property. e.The IRS has the authority to do all these.1 Under Section 1031 a personal residence or an automobile used solely for personal purposes will qualify for a tax free exchange. T/F perty cannot be used by dealers in real property. T/F