Property Transactions”

I’m studying and need help with a Accounting question to help me learn.

“Property Transactions”

  • Discuss the circumstances when an investor can use section 1031 of the Internal Revenue Code (IRC) for like-kind of real estate exchanges to defer taxes when making a sale or disposal of property. Explain the three (3) conditions that must be met for 1031 to apply. Support your response with one (1) real-world example.
  • Define what “improper tax year” means through an empirical example. Explain two (2) reasons why a business owner would like to exercise the use of improper tax year.
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