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Gulf Shores Alabama
Real Estate including Orange Beach & Perdido Key
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1031 Tax Deferred Exchanges In the summer of 1990, the I.R.S. finally came out with the long awaited rules on Deferred Exchanges. Section 1.1031 of the Internal Revenue Code laid out in detail the procedure for turning a sale and purchase type transaction into an exchange. These new rules allowed owners of certain types of like kind Real and Personal property to sell their property and buy other like kind property without paying the U.S. Capital Gains Tax. The like kind provision for Real property is quite broad, and includes Land, Rental, and Business property. Any of which, can be exchanged for the other. The like kind provision for Personal property is more restrictive. This type of property must be in productive use in a business (depreciable property), and can only be exchanged for the same type of property. The rule also required that the "Exchanger" use a safe harbor to hold the proceeds while the exchange was in progress, and spelled out what those safe harbors were. The only practical safe
harbor for most "Exchangers" is a "Qualified Intermediary."
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03/31/2008
Professionals for the Entire Gulf
Coast Serving Gulf Shores, Orange Beach, Perdido Key, Ono Island, Alabama, AL,
Ala, FL, Florida, Fla Copyright 2003-2008 For website related problems: please email webmaster Gulf
Shores Shrimp Festival Online
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