IRS to Study Like-Kind Exchanges


The IRS will study reporting and compliance issues regarding like-kind exchanges of property under IRC section 1031. The move comes in response to a September report by the Treasury Inspector General for Tax Administration that faulted the IRS for what it called little oversight of the method for deferring capital gains tax. Amounts so deferred more than tripled in six years, to $73.6 billion in 2004, TIGTA said. The report also called for more consistent guidance on filing requirements for Form 8824, Like-Kind Exchanges , and clarification of rules and regulations regarding exchanges of second and vacation homes (see “ Home Free ,” JofA , Jan. 07, page 40).

SPONSORED REPORT

A new line of business to consider

Technology assessments may open the door to new engagement opportunities for your firm. What is a technology assessment? How do you perform one? JofA Tech Q&A author J. Carlton Collins shows you in a detailed explanation.

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.