What is a “like-kind” exchange?
This is a tax deferring option that allows someone selling real estate or business machinery and equipment to exchange it for replacement real estate or machinery and equipment. There are many requirements that must be met on such a sale. However, the income tax savings can be very significant. If replacement property is held long enough, the income tax consequences can even be avoided entirely. Call for details.
Property that is held for business or investment purposes is exchanged for property that is of the same nature or character and is also being held for business or investment purposes. By exchanging property rather than selling it, the taxpayer may defer capital gain taxes. The process and rules governing each exchange are complicated and must be followed explicitly in order for the exchange to be “successful”. Q: What is personal property? A: Personal property is tangible and is not a structural component of a building. In other words, it must be something that can be moved. If the property is designed or constructed to remain permanently in place, then it is considered real property rather than personal property. Return to Top Q: How can professionally prepared financial statements help ensure the success of my business? A: There are several reasons to have financial statements prepared by a professional on a regular basis: • Comfort level that your management decisions are based on a
