Arlint Tax Attorney Las Vegas NV

 

 

Cort Arlint a tax attorney in Las Vegas Nevada discusses what tax attorneys do and how to pick the right one to solve your tax issues. Tax attorneys perform tax research tax, tax litigation and tax planning.

1031 Like-Kind Exchanges

Trenton Arlint discusses 1031 Like-Kind Exchanges and how it can reduce a persons tax liability.  Trenton Arlint works for Arlint & Armstrong, a tax attorney firm in the Las Vegas and Henderson areas.  For more information, or to contact the firms please visit www.taxattorneylasvegasnv.com.

1033 Exchange

Q. What is a 1033 Exchange?

A.  Finding information about a 1033 exchange can be tricky.  A search of the IRS site brings up the following as the first result:

“This notice provides guidance regarding an extension of the replacement period under § 1033(e) of the Internal Revenue Code for livestock sold on account of drought in specified counties.”

If you sold your chickens and/or goats and are looking for a way to defer the gain on that income, please see http://www.irs.gov/irb/2012-42_IRB/ar11.html.  If, however, you are interested in deferring gain on a property sale, keep reading.

A 1033 Exchange is referred to as one of the common nontaxable exchanges, along with sections 1031 and 1032.  What is special about section 1033 is that it deals with involuntary conversions.  Specifically the code says:

“If property  (as a result of its destruction in whole or in part, theft, seizure, or requisition or condemnation or threat or imminence thereof) is compulsorily or involuntarily converted into property similar or related in service or use to the property so converted, no gain shall be recognized.”

So, essentially, should a flood, tornado, meteor or zombie invasion destroy your property; or the government need your space for a new freeway; you may find and purchase a similar property, within three years, and defer the taxable gain on any income from the converted property.  Please check with your tax advisor regarding a zombie invasion.

Q. What if your involuntarily converted property is not in the United State?

A.The IRS defines similar property as located in the United States, so the 1033 exchange would not be relevant in that scenario.  However, there have been some cases in which the property converted was in a US territory.  Specifically, Private Letter Ruling 9038030-dated 6/25/1990 did provide permission for a taxpayer in a similar circumstance to claim the like kind exchange for a property in the United States and a property in the Virgin Islands.  See below for an excerpt.

“Thus, if the individual involved in the exchange is a citizen or resident of the United States and has income derived from sources within the Virgin Islands, or effectively connected with the conduct if a trade or business within such possession, for the taxable year (of the exchange), then section 932 of the code applies to that individual and the term “United States” is enlarged to encompass the US Virgin Islands.  Thus, property located in the States or in the District of Columbia and property located in the US Virgin Islands shall be considered as property of like kind for that particular individual.

Although the IRS is quick to point out that a private letter ruling does not alter then tax code, and that each scenario is different, it is worth knowing that they have made allowances for similar exchanges.

 

Increasing Need for Tax Attorney’s in Las Vegas

 

According to a recent article entitled Tax Cheaters Beware: IRS Investigations Are UP, the IRS has stepped up their technology developments to increase their proficiency in identifying dubious tax returns.  The IRS Criminal Investigation published its 2012 annual report showing 5,125 investigation with 2,634 of them turning in convictions.  Even though the IRS employs a smaller tax-collecting agency they have grown the percent of investigations by utilizing smarter technology which detects faulty information and flags the return for a more scrupulous inspection by IRS agents.

For those individuals who do not play in the grey area or on the other side of the line then this is not an issue, however, it does effect the others.  With the IRS stepping up their game it is important to have professionals with extensive understandings of the tax code to protect you against the increasingly prevailing IRS.

http://www.taxresolution.com/blog/tax-cheats-beware-irs-investigations-are-up/

 

Las Vegas Tax Attorneys Arlint & Armstrong

 

Arlint & Armstrong, Tax Attorney’s
2480 W. Horizon Ridge Pwky
Suite 140
Henderson, NV 89052

Phone: 702-509-9687

taxattorneylasvegasnv.com

Nevada Small Business Tax Workshops

There are workshops being held all year in multiple locations around Nevada which are focused on Small Business, Start-ups, and the tax implications which apply.  The city’s hosting such events are Las Vegas, Carson City, Henderson, and Reno.

The Las Vegas Event is called Committed to Our Community and is being held on September 12, 2013.  Sponsored by Regional Business Development Advisory Counsel, this workshop will address the economic recovery in Southern Nevada and provide Locals with business building opportunities.  Tax topics will consist of the Schedule C Initiative.

The Henderson event is called Ask the Advisors Tax Seminar and is being held on June 18, July 16, August 20, September 17, and October 15.  Discussion topics are going to consists of tax issues of small businesses, Nevada state tax reporting, and Federal taxes and your small business.

For more information on how to RSVP for one of these scheduled event please use the link below.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Nevada-Workshops

 

Las Vegas Tax Attorneys Arlint & Armstrong

 

Arlint & Armstong, Tax Attorney’s
2480 W. Horizon Ridge Pkwy
Henderson, NV 89052

PHONE: 702-509-9687

taxattorneylasvegasnv.com