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Understanding Installment Sales in Property Disposition and Tax Reporting
Immigrants selling property in the U.S. must understand installment sales, adjusted basis, and depreciation recapture. Proper documentation and filing IRS…
Disposition or Sale of Property in Involuntary Conversion Cases
Involuntary conversion is a property loss event treated as a sale by the IRS with special tax relief rules. Homeowners…
Tax Treatment for Worthless Securities and Property Disposition
Taxpayers owning stocks or bonds that become completely worthless can claim a loss using IRS Form 8949 and Schedule D.…
How to Calculate Depreciation When Property Changes to Business or Rental Use
Owners converting personal property to business or rental use must follow IRS rules. Depreciation basis equals the lower of market…
Tax Basis Rules for Property Transferred Between Spouses or Incident to Divorce
Transfers between spouses or heirs follow specific tax rules, often avoiding immediate tax. Inherited property usually receives a stepped-up basis,…
How to Determine Basis for Property Received as a Gift
Gifted property basis rules depend on the donor’s adjusted basis and fair market value at gifting. Documenting gift tax paid…
Understanding Basis Adjustments in Involuntary Property Conversions
Involuntary conversions allow deferral of tax gains if replacement property is bought timely and is similar in use. Documentation and…
Understanding Bargain Purchases and Income Recognition Rules
If you acquire property below fair market value, you must report the difference as income. Businesses must follow GAAP and…