Current federal and state tax law requires that Businesses and Individuals report their taxable income annually, including tax deferred transactions. In addition, recent tax statutes and regulations require that businesses and individuals, and their advisors, disclose tax reporting positions which may be subject to interpretation by tax authorities, including Schedule M-1 and Circular 230.
The Financial Accounting Standards Board issued FASB Financial Interpretation 48, which requires public and private businesses to disclose any tax positions that have a 50% or less chance being sustained if contested for all open years.
Section 1031 exchanges may involve substantial analysis and interpretation in determining whether an asset maybe exchanged or whether the exchange is fully tax deferred.
We advise clients as to the proper tax structure and types of 1031 Exchange to fully comply with federal and state tax law. At the completion of the exchange, we prepare, for attachment to the client’s tax return, tax forms 8824 and 4797. We compute the depreciation expense for exchanged assets for inclusion into the client’s tax return.
We provide an tax opinion that satisfies the requirement that the exchange comply with federal tax law as well as for FASB FIN 48 reporting requirements.