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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