I have a client who wants to amend a tax return because prior accountant failed to use 1031 to offset capital gain on sale of residence transaction. Where can I get information on mechanics of this and probable success of 1040X to secure a large refund.
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Last edited by dagnyann@comcast.net; 11-04-2007, 11:03 AM. -
The like-kind-exchange rules are mandatory. If it was properly structured as a like-kind-exchange, you have to file an amended return to report it as such. You don't have a choice, so your likelyhood of success is 100%.
If it was not properly sturctured as a like-kind-exchange, you can't go back and change history. You're stuck paying tax on the gain.
It all depends on whether you crossed all the t's and dotted all the i's on the transaction.
As to rules on how to do the mechanics, see page 10 in IRS Pub 544.
Last edited by Bees Knees; 11-04-2007, 12:04 PM. -
1031 on a residence?
Normally the sale of a residence wouldn't qualify for a 1031 exchange unless it were rental or business property.I have a client who wants to amend a tax return because prior accountant failed to use 1031 to offset capital gain on sale of residence transaction.Comment
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Right. No 1031 on personal residence.Originally posted by DonPriebe View Post
Are you talking about Sec 121? That allows you to exempt up to 500,000 (250,000 single) of gain on the sale of a residence if you meet the qualifications.You have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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Lot of good info available on internet. Just google it!Comment
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