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Dear Clients and Friends,
It's hard believe another summer is already behind us. We did have some beautiful weather here in the Northeast and we hope you had a chance to enjoy it.
As a reminder for those who pay quarterly estimates, the third installment is due September 15. If you need a copy of your voucher, or your income situation has significantly changed, please contact us.
Also, 2013 individual tax returns on extension are due October 15, so please provide us your information to meet this final deadline.
Very truly yours,
Suzanne LoBiondo and Christopher Cheeseman
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Is a Like-Kind Exchange a Good Option for Your Business?
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Normally, when companies sell properties, they must pay taxes on any gain they receive. Like-kind exchanges, transactions in which companies trade properties, may be carried out without any immediate tax consequences.
They must satisfy IRS rules, however, which include:
- The properties must have the same "nature or character," as set forth in IRS guidance.
- The exchanges can be business or investment properties put to a productive use.
- The exchanges can't involve inventory, most securities and some other assets.
- Taxes must be paid on any cash or non-similar property that is part of the deal.
Keep in mind that like-kind exchanges are tax-deferred transactions, not tax free. When a company eventually sells the property it received in an exchange, it must pay tax on any gain from its original investment. In the meantime, though, the business/company can use the funds it would have paid in taxes and it has acquired a new property that may better suit its needs without necessarily making a cash outlay.
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C&L Tax and Accounting Services LLP is a boutique CPA firm that specializes in meeting the tax and accounting needs of individuals and small businesses. Our experienced tax and accounting professionals offer clients insightful and strategic tax planning and compliance services that maximize savings year after year.