Deferred Like-kind Exchange & New Construction
THE BASICS Generally, you recognize no gain or loss on the exchange of property you held for the productive use in a trade or business or for investment if you exchange that property solely for property of "like kind" that you also plan to hold either for productive use in a trade or business or for investment. Such an exchange is referred to as a "like-kind exchange" or "1031 exchange" [named after a section of the Internal Revenue Code (IRC)]. Under a like-kind exchange, th
New Rule on IRA Rollovers
Many taxpayers, at one time or another, need to transfer funds from one IRA to another IRA and generally have 60 days to do so. Taxpayers are limited to only one IRA rollover for any 12-month period (NOTE: this 12-month rule does not apply to direct, trustee-to-trustee transfers). Previously, the interpretation by the IRS was that this rule was applied on an IRA-by-IRA basis. In other words, a rollover from one IRA to another would not affect a rollover involving other IRAs
Is Roth IRA Right for You?
Roth IRAs (named after late U.S. Senator William Roth of Delaware who first proposed them in 1989) have been in existence since the Taxpayer Relief Act of 1997. In contrast to Traditional IRAs, contributions to the Roth IRA are not tax deductible but withdrawals are tax-free if certain conditions are met. If we lived in a world where nothing changed, Traditional IRAs and Roth IRAs would in theory produce identical after-tax result for a taxpayer. For example, if taxpayers A