Discussion:1033 Involuntary Conversions
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| Revision as of 18:31, 2 April 2008 ClA (Talk | contribs) (New Discussion) ← Previous diff |
Current revision Taxwizard (Talk | contribs) (The like-kind st) |
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| Thanks. Not very experienced with Involuntary Conversions.}} | Thanks. Not very experienced with Involuntary Conversions.}} | ||
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| + | {{ForumReplyPost|UserID=Taxwizard|Date=4 April 2008|Text=The like-kind standard applies to condemnations -- not fires. For a fire, you would need to apply the similar or related in service or use test. Borrowed money can be used to make the replacement.}} | ||
Current revision
Discussion Forum Index --> Advanced Tax Questions --> 1033 Involuntary Conversions
Discussion Forum Index --> Tax Questions --> 1033 Involuntary Conversions
| 2 April 2008 | |
| Rental property burned down by fire. Insurance paid for damages. He later sold property at a gain.
Involuntary conversion rules states he needs to buy a "like kind" replacement property to not recognize a gain. Question is, does he have to put ALL the cash from this transaction into the new replacement property? Or can he not use the cash and get a mortgage instead? Rule says the cost basis has to be higher than the old one.......Can't find anything on the use of funds. Thanks. Not very experienced with Involuntary Conversions. | |
| 4 April 2008 | |
| The like-kind standard applies to condemnations -- not fires. For a fire, you would need to apply the similar or related in service or use test. Borrowed money can be used to make the replacement. | |
