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Discussion Forum Index --> Advanced Tax Questions --> 1031 exchange for farmer
Discussion Forum Index --> Tax Questions --> 1031 exchange for farmer
Eapat (talk|edits) said:
| 28 January 2008
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| Close of acquired property has to be completed by earlier of 180 days or filing (with ext) of tax return. Farmer needs to file and pay by 3/3, but exchange won't be complete. What will be the ramifications if we pay by voucer by 3/3 but can't file return??
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Kevinh5 (talk|edits) said:
| 28 January 2008
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| farmer doesn't NEED to file by 3/3 - he only WANTS to file by that date to avoid a penalty. He could have chosen to pay in quarterly estimates like other taxpayers.
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Eapat (talk|edits) said:
| 29 January 2008
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| I understand that, but estimates weren't paid and the land sale occurred in December. So, he has sooner of 180 days or filing of return to close on next property. We would have paid estimates if we had known. So, back to my question
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Keith (talk|edits) said:
| 29 January 2008
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| Pay in 110% the prior years tax to stop the underpayment penalty now, and file on April 15 or October 15 with extension. By paying the tax on 3/3 and not filing the return you are electing out of the "farmer no penalty" provision. If the tax is paid on 3/3 the return will be due 4/15.
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