If you want absolute certainty on an exchange of a property that will eventually be converted to a personal residence, see Rev. Proc. 2008-16. Take any other approach and there will always be a certain amount of risk.
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Matthew E. Rappaport, Esq., LL.M.
Vice Managing Partner
Chair, Taxation Group
Falcon, Rappaport & Berkman PLLC
(516) 558-3377
mer@frblaw.com------------------------------
Original Message:
Sent: 01-23-2022 08:53 AM
From: Abby Alhante
Subject: 1031 Exchange
The 24 month rule interests me. Because you mentioned "24" months, I introduce the question here, and would like to expand the discussion on this fine point. I am also posting a question on the topic.
If a taxpayer does a 1031 exchange on a Single family residence which has been rented out for year, and subsequently after the 1031 exchange decides to convert it to personal use, what happens ?
Is there a holding period required so as to protect the prior tax deferred change?
Will there ever be an acceleration or recapture of the prior deferred gain ?
Please see new posting " converted after a 1031"
Abby Alhante, CPA
Kurcias & Alhante, LLC CPAs
525 Broadhollow Road Suite 104
Melville NY 11747
516.829-5890 Ext 2 Fax 516-829-3976
Mobile 516-381-9301
AbbyA@KurciasAlhanteCPAs.com
( E mail response preferred )
Original Message:
Sent: 1/22/2022 8:07:00 PM
From: Matthew Rappaport
Subject: RE: 1031 Exchange
Should be fine. S-Corp's the taxpayer, regardless of who owns the stock.
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Matthew E. Rappaport, Esq., LL.M.
Vice Managing Partner
Chair, Taxation Group
Falcon, Rappaport & Berkman PLLC
(516) 558-3377
mer@frblaw.com
Original Message:
Sent: 01-21-2022 10:16 AM
From: Richard Trisciuzzi
Subject: 1031 Exchange
Can my Client gift shares of stock in her S Corporation to her children and not void her 1031 exchange.
FACTS
My client owns 100% of her S corporation . The S corporation owns rental real estate and in 2021 did a 1031 exchange for other real estate. My understanding is that the replacement property needs to be owned by the taxpayer (the S Corp.) and used in a business manor for 24 months following the exchange. The property would be owned and used by the S corporation. According to my client, they were told they can gift her shares of S corporate Stock and not void the exchange. Can anyone confirm that this is correct or not. Any advise is appreciated.
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Richard Trisciuzzi
Richard Iris, CPA
Nesconset NY
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