One key finding of the survey of almost 700 CPAs was that clients do not tap their CPAs' knowledge of Section 1031 of the Internal Revenue Code. This section of the tax code allows buyers and sellers of commercial property to defer capital gains taxes by rolling the proceeds from a sale into another investment property of equal or greater value.
While the majority of the CPAs surveyed said that they are familiar with the tax deferral benefits of Section 1031, almost half of them are not advising their clients to execute this transaction. The reason, according to a quarter of the CPAs polled, is that they are not consulted on real estate transactions until after their completion.
A real estate attorney with three decades of experience expressed surprise at the finding and urged investors to use all the resources at their disposal when making commercial real. . . full story here.
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Posted by: john beck | September 08, 2009 at 12:44 AM