Can the owner get a pre-approval letter from the IRS on a specific 561 Exchange transaction?
A. Although, many of our clients have several fulltime IRS agents working in their corporate offices to ensure full compliance on these type of transactions and have approved them prior to excuting the transaction, IRS policy does not provide pre-certification. As in any IRS transaction, if the rules are not followed, the IRS can contest them, which could result in a challenage of the value of the 561 apprasial or tax deduction. This further illusrates why companies are advised to work with trained experts of the 561 Exchange transaction, to ensure that the transaction complies with the standards and regulations set by the IRS.
Related Questions
- Can the owner do a 561 Exchange transaction if the property was recently purchased and has not really depreciated much?
- What kind of a transaction would increase an asset account and increase the owners equity account?
- Can the owner get a pre-approval letter from the IRS on a specific 561 Exchange transaction?
