CPA and Accounting Articles
July 21, 2010
First American Exchange Company Coordinating a 1031 exchange for limited liability companies or partnerships can present a unique set of challenges. If the entity itself will remain intact, the partnership or the LLC can sell its property and purchase replacement property through the 1031 exchange process. However, a common issue that arises is that not all of the members or partners can agree on a property to purchase, or even if they want to do an exchange at all. Full Story
July 21, 2010
First American Exchange Company The U.S. House of Representatives recently voted to pass H.R. 4213, which, effective January 1, 2011, will increase the tax on carried interest. Full Story
July 21, 2010
First American Exchange Company Taxes, like life, can be like riding a roller coaster. Sometimes it’s up and sometimes it’s down. This is definitely the case when speaking about the Federal capital gains rate for individuals. In the past 20 years, this tax has been as high as 28% and is currently at its low point of 15%. But, this too shall change as of January 1, 2011, when the rate is scheduled to go back to 20%. Full Story
July 21, 2010
First American Exchange Company <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> It is wise to determine the amount of your capital gain or loss prior to the sale of your investment property. In fact, the earlier you determine the amount of your gain or loss, the better prepared you will be to structure the transaction to your maximum benefit. If you have a capital gain and you plan to acquire “like-kind property” that will also be held for investment, you may wish to consider a §1031 tax-deferred exchange to defer the gain and build your wealth. Full Story
July 15, 2010
First American Exchange Company What might you be guilty of doing that could potentially disqualify your 1031 exchange transaction? Here are a few reasons you could be putting your exchange at risk. Full Story
June 23, 2010
First American Exchange Company, LLC Leasing property to a potential buyer serves a variety of purposes. The structure is most frequently used when a potential buyer, for whatever reason, does not have the funds available to purchase the property immediately. The advantage to the buyer is having additional time to obtain the purchase funds (or financing) while still having use of the property. For the owner, rental income is generated while a buyer and purchase price are locked in, provided the buyer can secure the needed funds or financing within a given period of time. Full Story
June 22, 2010
Todd Solomon The IRS has recently issued several pieces of guidance related to the filing of the Report of Foreign Bank and Financial Accounts, IRS Form TD F 90-22.1 (“FBAR”), by pension plan sponsors. While the IRS has relieved some of the filing obligations, most notably the requirement for plans to file for foreign hedge fund investments for 2009 and prior years, certain filing obligations remain. Full Story
June 11, 2010
Rea & Associates, Inc. Businesses and not-for-profit organizations are accustomed to IRS rules
that require them to report certain payments on annual Form 1099
information returns. However, the recently enacted healthcare law imposes
surprising new Form 1099 reporting requirements. Complying with them may
add significantly to your organization's paperwork burden. While the new
rules don't apply to payments made before 2012, it's not too early to
start gearing up to deal with them. Full Story