...the tax liability on inherited property and like-kind exchanges. Identify at least two (2) types of property that are not considered like-kind exchanges, and speculate on the reasons why they do not meet the requirements for consideration. Defend your position. From the first quest we are asked to reviewing the scenario, explore the key exceptions that would prevent taxpayers from deferring the tax liability on inherited property and like-kind exchanges. Identify at least two (2) types of property that are not considered like-kind exchanges, and speculate on the reasons why they do not meet the requirements for consideration. Defend your position. One key exception that would prevent tax payer from deferring the tax liability is for that tax not to identify the replacement property within 45 days of the transfer of like-kind property, another exception is that the Tax Payer did not receive the replacement property within the 180 days when the like- kind Property. Some Property that are not considered as like- kind Property are Real property located in the United States and real property located outside the United States are not considered like-kind property under the like-kind exchange rules. If you exchange foreign real property for property located in the United States, your gain or loss on the exchange is recognized. Foreign real property is real property not located in a state or the District of Columbia. Also, an exchange of personal property for real property does...
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...First, this report will compare between nominal and real change in the expenditure. This research will analyze the changes of major departments and examine why the changes appear. Lastly, this report will investigate how those changes affect citizens’ life in Kansas City. By contrast, Aviation Department Expenditure decreased from $179.1 million to $146.8 million, an amount that represents $32.2 million decrease as well as an 18.02% decrease. Public Works Department Expenditure decreased from $149.7 million to $107.2 million, an amount that represents $42.47 decrease as well as a 28.38% decrease. Economic Development Department Expenditure decreased from $102.2 million to $29.7 million, an amount that represents $72.5 decrease, as well as a 70.91% decrease. There are two items for improving Water and Sewer Systems. First, the City has a serious problem that water and sewer systems have broken down. The Water Services Expenditure in 2011-12 reflects the cost of improving these public infrastructures. For this reason, the item of public infrastructure is a 28.66% increase as well as $39.9 million from 2009-10 to 2011-12. In addition, the City needs to allocate additional funds for the improvements of healthy community, which are ‘House hold Hazardous Waste,’ ‘Industrial Waste Control,’ ‘Sewer Line Maintenance,’ and ‘Water Treatment.’ The item of the improvements of healthy community is a 35.5% increase as well as $14.7 million increase. To cover those costs, the City decided...
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...State of New Jersey ST-8 (3-07, R-11) DIVISION OF TAXATION To be completed by both owner of real property and contractor, and retained by contractor. Read instructions on back of this certificate. Do not send this form to the Division of Taxation. SALES TAX FORM ST-8 CERTIFICATE OF EXEMPT CAPITAL IMPROVEMENT A registered New Jersey contractor must collect the tax on the amount charged for labor and services under the contract unless the owner gives him a properly completed Certificate of Exempt Capital Improvement. MAY BE ISSUED ONLY BY THE OWNER OF THE REAL PROPERTY MAY NOT BE ISSUED FOR THE PURCHASE OF MATERIALS _______________________________________________________________________________________________________________ (Name of Contractor) _______________________________________________________________________________________________________________ (Address of Contractor) _______________________________________________________________________________________________________________ (Contractor’s New Jersey Certificate of Authority Number) THE FOLLOWING INFORMATION MUST BE FURNISHED: The nature of the contract is as follows (describe the exempt capital improvement to be made):______________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ _______________________________...
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...Top 5 Answers About 1031 Exchange Rules To the relief of many real estate investors, the recent tax reform left the 1031 exchange rules of Section 1031 of the IRS tax code essentially untouched. The tax reform did however limit the 1031 exchange rules to real estate, allowing you to still implement the benefits of a 1031 exchange as a real estate investor. To get a better understanding of what these benefits are, let’s take a closer look at the top 5 frequently asked 1031 exchange questions. What is a 1031 Exchange? The 1031 Exchange Rules of Section 1031 of the IRS tax code define specifically what qualifies as a 1031 Exchange, or “Starker Exchange” as they are commonly referred to. Simply put, as an investor, you can “defer” any capital gains...
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...Subject: Investment in real estate in New York City and factors Topic: Factors that influence investment in real estates in New York City Question: What are factors that provide the foreign investors to invest their money to real estate in New York City? Thesis: Diversification, big amount of money, exchange rate and quality of life are factors that influence foreigners to invest in real estate in New York City Abstract: With the economic crisis in the U.S., Americans are worried about investing in real estate while foreign investors feel the U.S. real estate market is very enthusiastic especially in New York City. According to an annual survey taken by the Association of Foreign Investors in Real Estate (AFIRE), the U.S. rose to the top of the real estate market world. AFIRE members hold more than $627 billion of global real estate, including $265 billion in the U.S. About 72 percent of the respondents planned to invest more money in the United States in 2011. Based on the foreign investors in real estate in the U.S., the research evaluated the factors that influence the foreign investment in U.S. real estate. Outline of the Paper 1. Introduction 2. Foreign Investors Taxation 3. When to Invest in Real Estate 4. Factors that Influence Investing in Real Estate in New York City * Big Amount of Money * Diversification * Exchange Rate * Quality of Life 5. Conclusion 6. List of References Introduction When the economy goes down...
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...Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) Communication and the Audience BCOM 230 Hank Parisi Mary Anderson Michael Wolper Sara Slevin Suzanne Beal Cynthia Gernertt ACCOUNTANT-PEER E-MAIL TO ACCOUNTING DEPARTMENT From: Beth Riordan Manufacturing To: Accounting Department Cc: John Subject: Status of Due Diligence Investigation All Concerned - Just an update on the DD report, everything went out as planned, the return data request included a checklist that covered the following areas; corporate matters, financial statements, tax/governmental reports and compliance, personal property, contracts and agreements, real property, intellectual property, insurance, litigation, affiliate transactions or arrangements, and environmental protection. I realize some of these areas may not apply to this particular company, but I wanted to make sure I covered all bases. Better to ask and have it not apply than not ask and miss important information. They have replied on some of the areas, mostly the easy ones that had little or nothing to report back, and they have addressed some of the financial information. However, there seems to be a little delay with most of what we need. I have had a few calls, most were asking for clarification on the data requested. Once I answered their questions, more calls came in requesting an extended due...
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...(9) b (10) c 2. personal property used in business’ shall mean tangible goods and chattels use or held for use by any business conducted for profit but doesn’t include goods and chattels affixed to real property as to become part thereof and not to be removable without the material’s injury. If these cranes come within the exception quoted, then they must be taxed as real estate. If they are found to not come within this exception, they are properly taxable as personal property used in business under the Business Personal Property Tax Act. 3. A fixture is defined as personal property that has become attached or annexed to real estate; a fixture generally is treated as part of real estate. There are certain things considered when determining whether or not the item will be considered as a fixture. First, it will need to be determined whether the fixture is included in the real estate for tax purposes. Second, it would need to be determined if the sale of the real estate will include the item of property. Third, it will need to be determined whether the item is covered by the mortgage and fourth, if the item belongs to the landowner, not the tenant that could be terminated of a lease. Based on information above, although the cable was annexed to the telephone poles, it was based on a lease, it did not belong to the landlord owner, therefore it could not qualify as a fixture. In addition, the cable is not included in the value of the property nor is it part of a security...
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...Personal property, also referred to as movable property, is anything other than land that can be the subject of ownership, including stocks, money, notes, Patents, and copyrights, as well as intangible property. Real property is land and ordinarily anything erected on, growing on, or affixed to it, including buildings and crops. The term is also used to declare any rights that issue from the ownership of land. The terms real estate and real property generally refer to land. The term land, in its general usage, includes not only the face of the earth but everything of a permanent nature over or under it, including minerals, oil, and gases. In modern usage, the word premises has come to mean the land itself or the land with all structures attached. Residential buildings and yards are commonly referred to as premises. Personal property is property owned by an individual or business which is movable and is not affixed to or associated with the land. Basically, personal property is everything except real property. Personal property for a business would include equipment, office furniture and equipment, cars/trucks purchased and used by the business, and, basically, everything that isn't "nailed down." In other words, personal property is movable, while real property is not. Because of the mobile nature of personal property, it is more difficult for a credit to use personal property to secure a loan. For example, if a bank loans money on a building, it can be sure that the building...
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...CHAPTER 1 THE NATURE OF REAL ESTATE AND REAL ESTATE MARKETS ------------------------------------------------- Test Problems 1. A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a: b. User market 2. The market in which required rates of return on available investment opportunities are determined is referred to as the: d. Capital market 3. The actions of local, state, and federal governments affect real estate values d. All of the above 4. Approximately what portion of U.S. households own their own home? b. Approximately two-thirds 5. Of the following asset categories, which class has the greatest aggregate market value? d. Nongovernment real estate 6. Storm water drainage systems are best described as: b. Improvements to the land 7. What is the single largest asset category, in terms of value, in the portfolio of the typical U.S. household? a. Housing 8. Real estate markets differ from other asset classes by having all of the following characteristics except: d. Homogeneous product 9. Which of the following is not important to the location of commercial properties? c. Access to schools 10. Which of the following attributes of a home are the most difficult to observe and value? c. location attributes ------------------------------------------------- Study Questions 1. The term real estate can be used in three fundamental ways. List these...
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...Exam #3 ACNT 1331 Spring 2012 | | 1. Terry Trumbull purchased a tract of land. In order to have city water, he had to pay the water company $5,000 to extend the water line to his property. The $5,000 cost is an addition to the basis of the land. a. True b. False Answer: _____ 2. The basis for nonbusiness property changed to business use is the greater of the adjusted basis of the property or its fair market value on the date it is converted to business use. a. True b. False Answer: _____ 3. David Dawson owned two shares of a corporation's common stock. He paid $60 for one share and $30 for the other share. The corporation declared a stock dividend which gave stockholders two new shares of common stock for each share they held. After the distribution, David owns six shares of stock with an adjusted basis of $15 each. a. True b. False Answer: _____ 4. For purposes of the related party rules, the taxpayer's parents are "related persons," but the taxpayer's siblings (brothers and sisters) are not. a. True b. False Answer: _____ 5. The wash sale rules merely postpone the loss until the taxpayer sells the securities in a nonwash sale transaction. a. True b. False Answer: _____ 6. Leonard Lambert's commercial building, which had an adjusted basis of $500,000, was partially destroyed by fire. The fair market value was $800,000 just before the fire and $600,000 immediately after. Leonard received $150,000 insurance proceeds and deducted...
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...certain property transferred by the decedent through duly executed deeds and without valuable consideration, some to trustees and some directly to her children. The Commissioner of Internal Revenue held that, under § 402(c), the value of all this property at her death must be included in the gross state. He raised the assessment accordingly, and demanded the additional tax $34,662.65 -- here challenged. Section 402 directs that the gross estate shall be ascertained by including (among other things) the value at his death of all property "to the extent of any interest therein of which the decedent has at any time made a transfer, or with respect to which he has at any time created a trust, in contemplation of or intended to take effect in possession or enjoyment at or after his death (whether such transfer or trust is made or created before or after the passage of this act), except in case of a bona fide sale for a fair consideration in money or money's worth." Concerning transfer of the residences in 1917, the trial court charged “The effect of this transaction was to vest in the five sons named in the deed full and complete title to the property, including the right of disposition. They had a right to sell the property subject to the lease, and had all rights incident to ownership. There was here a gift completed during the lifetime of the donor. The act of 1918 did not purport to tax such gifts." "I have reached the conclusion, therefore, that, respecting the property conveyed...
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...to recover. Prior approval by the affected celebrity is needed to obtain a domain name that is similar to a celebrity’s name. 2 The Hart-Scott-Rodino Antitrust Improvement Act led to rules requiring: That mergers be allowed if United States competitiveness in world markets is improved. That failing companies are rescued through mergers whenever possible. That the Federal Trade Commission and the Justice Department be notified in advance of any merger involving certain firms. That certain activities are classified as per se violations. 3 The landlord has the right to enter the leased premises: To make necessary repairs Only if specifically provided in the lease To inspect for waste To inspect for illegal use 4 Which for of real property ownership includes the greatest degree of ownership? Fee simple defeasible Fee simple limitless Absolute life estate Fee simple absolute 5 A doctrine that says a patent may not be granted if the invention was used by the public for more than a certain period of time prior to the filing of the patent application is known as; The public use doctrine The fair use doctrine The bar to patents doctrine The public service doctrine 6 This form of alternative dispute resolution allows both parties to see the strengths and weaknesses of...
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...Client File memorandum to: File from: Re: HOLLY MARTIN, Tax year 2013 FACTS Our client, Holly Martin, is a developer who acquired a parcel of unimproved real property that she would like to develop. Although the land is currently zoned for commercial use, the developer would prefer not to begin development until an adjoining street is widened. With a wider street, her development can include a landscaped public entrance and lighting. Without the widening, the development will have only one entrance that is neither as accessible nor as attractive. The city does plan to widen the street in order to build bike paths which are now required in its new city plan. However, it will be easier for the city to widen the street if it acquires an easement across Mrs. Martin’s property. Mrs. Martin is interested in providing this easement to the city but would like assurance that she will receive a charitable contribution deduction for the easement. ISSUE AND CONCLUSION 1 Will the donation of the easement by Mrs. Martin qualify as a charitable contribution deduction? No, the donation of the easement will not qualify as a charitable contribution deduction. ANALYSIS 1 B-1 B-3 B-2 IRC §170 provides that contributions individuals make are deductible in the tax year paid. Unless the IRC provides an exception, it is the general rule that all charitable contributions made to a qualified organization, listed under IRC §170(c), shall be allowed a deduction. IRC...
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...For the traditional Chinese people, owning a property seems is one of essential elements in their whole life in order to live in peace and enjoy work. Hong Kong, which is the well known international city, has a great deal potential to attract investors. Not only the openness of property market can attract many local investors as well as mainlanders, but also its proximity and accessibility. However, the constant increasing and soaring price in property market of Hong Kong actually are vital challenges for most investors. In this paper, I will examine the problems and its causes about the challenges in investing in the property market of Hong Kong. Then, I will suggest several possible solutions and conclude by presenting my own opinion on the topic. One of the huge problems for almost investors who want to invest the real estate market of Hong Kong is about its price. The property price of Hong Kong is particularly expensive. It even creates the most expensive property transaction in the world during November 2009, which needs over four hundred millions to buy a one department (Business Times, 2009). Besides, the property price also has been increasing constantly. For example, there is almost thirty percentages increasing of mass-market prices in 2009 (“Lending”, 2009). Since the highest property price, a problem of liquidity bubble seems has a great chance to happen. It implies that the risk of having negative assets will be increased. Therefore, the investors need to face...
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...significant impact on how a company conducts business. Real property and personal property laws also vary between the states and play a significant role in business decisions. Research into insurance laws, environmental regulations, and the impact of real versus personal property laws in states considered for business operations is paramount to a successful business venture. Real and personal property acquisition A whitewater rafting business requires operating from the ground up. In searching for the best place suited to start up this business three sites where chosen, the Nolichucky River in North Carolina, the Chattooga River in South Carolina, and the Colorado River in the Grand Canyon in Arizona. There are two kinds of property, personal and real. Personal property in all three states is classified as movable. Mobile homes are classed as personal property and may be acquired with minimal formality. According to all state laws, mobile homes as personal property depreciate in value. Real property is immovable or attached to the land and the civil law protects the status of real property in real estate markets. Accountants "distinguish personal property from real property because personal property can be depreciated faster than improvements while land is not depreciable at all" (Wikipedia, 2012 Feb. 19). There are certain fees and other expenses that become part of the cost basis in the property. Real properties are...
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