Like-kind exchange: Tax Cuts and Jobs Act of 2017

Amid the myriad of changes in the new tax law, there is a change to what type of property can be exchanged under code Section 1031 as a qualified like-kind exchange. What’s changing? Under Code Section 1031, a taxpayer can elect to not recognize gain if he/she exchanges qualified property for similar qualified property, or …

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Flat Fee Rental Agencies – Are They Worth It?

Driving to work this morning, I happened to hear a commercial for one of the new Flat Fee rental agencies popping up across the Valley. They claim to be able to rent your home to quality tenants who will pay your mortgage, while you reap the benefits of cash flow and (the kicker for me) …

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How to Deduct Recurring Maintenance? The Routine Maintenance Safe Harbor

The Tangible Property and Repair Regulations & guidance issued in 2013 and 2014 has many new provisions including new “safe harbors” and definitions which affect all businesses that have depreciable property or pay for supplies and repairs. One area covered in the regulations is costs related to improving or repairing property and which of these …

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Expense Your Property under the De Minimis Safe Harbor

The IRS issued regulations in 2013 & 2014 trying to bring clarity to the many conflicting rules in the area of capitalization vs expensing of business property. These new regulations are commonly called the “tangible property regulations”. The new regulations apply to tax years beginning in 2014 and include new “safe harbors” and definitions which …

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Properly Classifying Property Held for Sale

Proper classification of assets on your entity’s statement of financial position (SOFP) and disclosure in the footnotes is important for both accuracy and transparency purposes. The users of your financial statements should know all significant purposes and uses of the assets listed. When you contact a broker to sell any property, you may need to …

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