Understanding Calculation of Gain or Loss on Real Estate Sales and Exchanges

One of the most common tax questions practitioners face when dealing with real estate issues is the calculation of gain or loss on the sale or exchange of real property. Exchanges have been a particularly popular tax planning tool in recent years and there are real differences in how sales and exchanges are treated in making calculations for tax purposes. Other factors often emerge as well, such as multiple parties involved and the recapture of past depreciation on some properties. Real estate tax expert David F. Windish has recently updated CCH’s Real Estate Taxation: A Practitioner’s Guide with the new fourth edition. Chapter 13 of this book covers in detail the rules involved in calculating gain or loss on sales or exchanges of real property and it also provides many sample calculations to help you gain a practical understanding of this often-complex area.

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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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