Comments on: Will my strategy be effective in deferring gain recognition on sale of the land? http://oodle.us/land-for-sale/will-my-strategy-be-effective-in-deferring-gain-recognition-on-sale-of-the-land Classified Ads Site Sat, 23 Apr 2011 06:04:05 -0400 http://wordpress.org/?v=abc hourly 1 By: Bibs http://oodle.us/land-for-sale/will-my-strategy-be-effective-in-deferring-gain-recognition-on-sale-of-the-land/comment-page-1#comment-6782 Bibs Sat, 13 Feb 2010 22:05:59 +0000 http://oodle.us/land-for-sale/will-my-strategy-be-effective-in-deferring-gain-recognition-on-sale-of-the-land#comment-6782 This deal doesn't pass the smell test because the corporation is a related party. I think that there is a strong possibility that: 1. You would be taxed on the full amount of the gain because the corporation is a related party. 2. The sale would would be taxed as ordinary income because it was a sale to a related party. (Code Section 1239 (a) ).<br><b>References : </b><br>I am a CPA, My source is CCH Para 1744 2008 US Master Tax Guide. This deal doesn’t pass the smell test because the corporation is a related party. I think that there is a strong possibility that:
1. You would be taxed on the full amount of the gain because the corporation is a related party.
2. The sale would would be taxed as ordinary income because it was a sale to a related party. (Code Section 1239 (a) ).
References :
I am a CPA, My source is CCH Para 1744 2008 US Master Tax Guide.

]]> By: William H http://oodle.us/land-for-sale/will-my-strategy-be-effective-in-deferring-gain-recognition-on-sale-of-the-land/comment-page-1#comment-6781 William H Sat, 13 Feb 2010 22:00:59 +0000 http://oodle.us/land-for-sale/will-my-strategy-be-effective-in-deferring-gain-recognition-on-sale-of-the-land#comment-6781 Your basis in the property will be transferred to the note. As the note is paid off, you would pay the taxes so your strategy will be effective in deferring the gains. Have you considered performing a 1031 tax deferred exchange? You would need to buy other investment property but would be able to not pay any taxes.<br><b>References : </b><br>starker.com Your basis in the property will be transferred to the note. As the note is paid off, you would pay the taxes so your strategy will be effective in deferring the gains.

Have you considered performing a 1031 tax deferred exchange? You would need to buy other investment property but would be able to not pay any taxes.
References :
starker.com

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