1. Tax Court finds that vacation home held primarily for personal use not consistent with "held for investment" intent under Section 1031.
Barry E. Moore et ux. v. Commissioner; T.C. Memo. 2007-134; No. 11002-03, May 30, 2007.
Goolsby v. Commissioner; T.C. Memo 2010-64, April 1, 2010.
Revenue Procedure 2008-16.
2. Tax relief (extension of 45 and 180 day timeframes) in Presidentially declared disaster situations.
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3. IRS LTR 200724007 does not consider Qualified Intermediary (QI) a disqualified person when less than 10% owned by disqualified persons or should QI pay a commission to a disqualified person such as an accountant or Realtor.
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4. IRS PLR 200807005 approves of "Single Member Limited Partnership" as a disregarded entity.
In PLR 200807005, the IRS explicitly approved an arrangement where the taxpayer proposed to acquire replacement property in a like-kind exchange by acquiring 100% of the interest in a limited partnership that owned the replacement property.
5. Rev. Proc. 2010-14 Provides relief for Taxpayer reporting gain due to bankrupt Qualified Intermediary.
In Revenue Procedure 2010-14, the IRS provides a safe harbor for the Taxpayer who fails to complete an exchange due to a bankrupt Qualified Intermediary.
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6. Non Safe Harbor Exchange - IRS view of an exchange outside the 180 calendar day safe harbor.
Effective September 15, 2000, Revenue Procedure 2000-37, Section 3, paragraph .02 states "...the Service recognizes that "parking" transactions can be accomplished outside of the safe harbor provided in this revenue procedure.
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7. IRS Concludes that Equipment Held Primarily for Sale Fails to Qualify for Exchange Treatment
In Chief Counsel Advisory (CCA) 201025049, dated June 25, 2010, the IRS concluded that Taxpayer's equipment held primarily for sale did not qualify for depreciation or like-kind exchange.
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8. IRS Addresses Bank Merger Issues in PLR 201030020 dated July 30, 2010
Applicant requested three rulings related to qualified trusts, trustee functions and successor QI merger with another QI while exchanges are pending.
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9. IRS Ruling On Chain Of Related Party Replacement Property Purchases
In PLR 201048025 (August 25, 2010) Exchangor acquires replacement property from Related Party, who also acquires replacement property from a Related Party. Given Related Parties are also exchanging and holding acquired property for two years, Section 1031(f) is not violated.
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10. IRS Issues Summary Opinion 2011-14 Regarding Constructive Receipt
In Crandall, T.C. Summary Opinion "The Court notes that the tax consequences are not what petitioners intended and the result may seem somewhat harsh. However, Congress enacted strict provisions under section 1031 with which taxpayers must comply."
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11. Morton v. United States Aircraft forward exchange
In addition to a constructive receipt issue the focus of the case was the personal versus business use of the aircraft. The escrow agent mistakenly wire the net proceeds from the sale to the Taxpayer. The funds were returned to the Qualified Intermediary the following day. The Court of Federal Claims determined the accidental transfer of funds followed by an immediate return did not violate the constructive receipt limitations. Furthermore, the Court determined not to overturn the exchange given the Taxpayer completed exchange requirements and should not be penalized for another persons mistake.
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