Category Archives: Tax Law

What is a “Like Kind” Exchange?

like kind exchangeA tax deferred exchange or “like kind” exchange is a method of disposing of and reinvesting funds from investment or business-use assets while deferring capital gains and recapture taxes. To successfully complete a like kind exchange, timing is extremely important and the assistance of experienced counsel is highly recommended.

The like kind exchange benefits are created by Internal Revenue Code Section 1031. So the process is often called a “1031 Exchange”. Before discussing the basics of the transaction, it is important to understand the nomenclature. The “Exchanger” is the person or entity that is selling and buying like kind property. The property being sold is called the “Relinquished Property” and the property being purchased is the “Replacement Property”. Continue reading

Why Hire a Tax Professional When Dealing with the IRS?

It is important to have an experienced tax professional assist you and your business with IRS audit, levy, lien, garnishment, and collection matters.

We have all heard horror stories from those who have had terrible experiences dealing with the IRS. Some of them are probably true, but most are more than likely the result of ineffective communication or a lack of understanding regarding the process. The IRS has over 100,000 employees. When you have that big of a workforce, you are bound to have few bad apples. However, in my experience in representing taxpayers with IRS issues, most IRS personnel are regular people just trying to do their jobs. Continue reading