My friend at Asset Exchange Company send me some interesting update that I thought you might be iterested in. They offer $499 Delayed Exchange Services and a Free 1031 Exchange Hotline: 877-471-1031 .

IRS Scrutiny into 1031 Exchanges…

If you are considering conducting a 1031 Exchange, make sure you work with Asset Exchange Company to ensure it is done right. The IRS is planning on increasing audits and enforcement of 1031 Exchanges by summer of 2008. 

In a report issued last month, the Treasure inspector general for tax administration wrote: “There appears to be little IRS oversight of the capital gains (or losses) deferred through like-kind exchanges.”  The inspector general made three specific recommendations, all of which have been accepted by the IRS:

• The IRS should study tax reporting and compliance issues involved with like-kind exchanges. The IRS agreed to conduct research and complete the work by Aug. 15, 2008. Based on the outcome of this research, it appears likely that exchanges that take place this year will receive greater scrutiny.
• The IRS should provide better information and guidance to taxpayers on how to conduct a proper 1031 exchange. The IRS has agreed that by Jan. 15, 2008, it will provide more information on a number of publications and forms to help taxpayers understand how the exchange process works. Specifically, Publication 17, Your Federal Income Tax will be updated to specifically remind taxpayers that they must file Form 8824 with their returns if they have been involved in 1031 exchanges in the previous year.
• The IRS must provide clear guidance to taxpayers on the rules and regulations of like-kind exchanges with respect to second homes that were not used exclusively by owners.

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This entry was posted on Monday, October 29th, 2007 at 10:04 pm and is filed under 1031 Tax deffered exchange. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.