Conscious uncoupling; the right way to split.

Conscious uncoupling; the right way to split. Conscious uncoupling is the right way to split. My readers may have believed I had a conscious uncoupling with them. I apologize. There is nothing else I can say, about my lack of articles or writing. However, I am back. I really want to write about conscious uncoupling. What a great idea. Doesn’t everyone benefit when separating partners make a concerted effort to have a grown-up, non-antagonistic split or divorce? Rather than waste time and money on not getting along, that same time and money are spent on getting along. The world would be a better place. Forgiveness is key to conscious uncoupling. Recognizing that everyone is human and doing their best, however, childish their actions may be is very empowering. The problem is that conscious uncoupling requires two mature adults. It is difficult at best to be mature when one’s heart is breaking. Maybe only the difficult breakups find their way to my desk. Several of the partners I have met acted like 14-year-olds. So what does one do? As difficult as it is, you take the high road. However, when you take the high road you always feel good about it. Modern technology is your friend in conscious uncoupling. I suggest the following steps: 1). Block your ex’s number from your phone- this will block phone calls and text messages. 2). Remove all pictures of the two of you. 3). Block all of his social media. Remember, the old saying out of sight out of mind. That saying is very applicable here. The Journal of Neurophysiology reports that seeing photographs of one’s ex-stimulated the areas of the brain that control motivation, rewards, cravings and addiction. Those are very powerful forces. The desire to reconcile is the strongest around 6 to 8 weeks after a breakup. This might be the best time go on vacation. Another conscious uncoupling tip is to think positive. The Journal of Positive Psychology conducted a study where one group of participants wrote about the positive aspects of past relationships and the other group wrote about the negative aspects of past relationships. The positive group reported feeling more empowered, energetic, thankful and satisfied. Alexandra Katehakis, M.F.T. wrote in the Huffington Post, be kind to yourself and your ex. She further states, be compassionate to your ex rather than invoking revenge, spite or fear. This may not be your easiest choice. However, it is ultimately the one emotion that can see you safely through conscious uncoupling. The first famous uncoupling couple was Gwyneth Paltrow and Chris Martin. Paltrow stated, "The idea is to stay married. But if you can't stay married, wouldn't the ideal be that you could still be a family and you could put aside your own stuff long enough to explore — what is this new family and who am I in it?" Paltrow explained. "And Chris is a great ex-husband 'cause he's a very, very willing partner in how to do that. We're constantly putting aside our own stuff and trying to re-imagine something that we don't personally have an example for." They are a true example of how conscious uncoupling benefits everyone. More articles conscious uncoupling in the near future. Please refer to past articles on forgiveness and relationships. Posted by Kimberley Kellogg at 6:09 PM

Kimberley Kellogg

I consider my strengths to be my ability to identify issues and solve problems, that I work well under pressure, and I am intelligent and a hard worker. I may be the most intelligent woman you will ever meet. I am Superwoman. My name is Kimberley Kellogg. I am the mother of three grown children, all of whom I am immensely proud of and I live in a suburb of Kansas City. I practiced criminal defense and domestic law for 13 years. Having earned a bachelor’s degree in psychology from The University of Missouri- Kansas City, a respiratory therapy diploma from Northwestern Medical School in Chicago, Illinois and my J.D. from The University of Missouri at Kansas City (UMKC) School of Law, I just a completeed my LLM at Thomas Jefferson School of Law in the International Taxation and Business Program. Today, I offer CLE presentations on ethics for Missouri lawyers and work as a mediator in Missouri. I also, am an author. I have two books published and I working on my next literary project. The reason I went to law school was so I could help people that were less fortunate and were unable to speak or stand up for themselves. At a time in my life, before advanced health directives, also known as living wills, and the famous Karen Ann Quinlan right to die case, I was employed as a respiratory therapist at a large medical center. I worked months with patients who literally couldn't speak. As a respiratory therapist, my suggestions on advance directives fell on deaf ears, no one would listen to me except for suggestions on ventilator settings. I thought as an attorney I could speak up for my patients. During law school and my practicing law career I had heard about THEM---lawyers who lose their licenses. I never thought I would be one of them. So, how do you or your co-workers keep from becoming me? Maybe you are out of control or you are beginning to lose control? In my recovery from the Superwoman syndrome, I have learned the path is very similar to any program that includes “the twelve steps.” Denial is denial. When the house is burning down; do you recognize this, or simply ignore it? I have worked with the Arizona, Missouri and Kansas Bars to address the issues I had when I practiced law. Those factors will not reoccur. I have worked with a therapist, mentor, AZAL, KALP, MOLA, an ethics coach (John Kurtz) and attended and presented at ethic CLEs. I have attended with permission the Missouri Bar series on Law Office Management. I am not the same person I was over ten years ago. I have worked with a bar group for over five years. I was instrumental in the formation of group meetings in both Arizona and Kansas. I know I cannot undo the damage I did when I practiced. I try to strive to improve the world with kind acts every day of my life, whenever and wherever I can. Remembering the many kindnesses extended to me during very difficult times, I want to dedicate the rest of my professional life to giving back to others in gratitude for all that has been given to me. How do I get people to listen to my story? I start by saying, “My name is Kimberley Kellogg.” Website: http://KimberleyKellogg.com Twitter: kimLegalLady Facebook: Facebook profile

Conscious uncoupling; the right way to split.

Conscious uncoupling is the right way to split. My readers may have believed I had a conscious uncoupling with them. I apologize. There is nothing else I can say, about my lack of articles or writing. However, I am back. I really want to write about conscious uncoupling. What a great idea. Doesn’t everyone benefit when separating partners make a concerted effort to have a grown-up, non-antagonistic split or divorce? Rather than waste time and money on not getting along, that same time and money is spent on getting along. The world would be a better place. Forgiveness is key to conscious uncoupling. Recognizing that everyone is human and doing their best, however childish their actions may be is very empowering. The problem is that conscious uncoupling requires two mature adults. It is difficult at best to be mature when one’s heart is breaking. Maybe only the difficult breakups find their way to my desk. Several of the partners I have met acted like 14 year olds. So what does one do? As difficult as it is, you take the high road. However, when you take the high road you always feel good about it. Modern technology is your friend in conscious uncoupling. I suggest the following steps: 1). Block your ex’s number from your phone- this will block phone calls and text messages. 2). Remove all pictures of the two of you. 3). Block all of his social media. Remember, the old saying out of sight out of mind. That saying is very applicable here. The Journal of Neurophysiology reports that seeing photographs of one’s ex stimulated the areas of the brain that control motivation, rewards, cravings and addiction. Those are very powerful forces. The desire to reconcile is the strongest around 6 to 8 weeks after a breakup. This might be the best time go on vacation. Another conscious uncoupling tip is to think positive. The Journal of Positive Psychology conducted a study where one group of participants wrote about the positive aspects of past relationships and the other group wrote about the negative aspects of past relationships. The positive group reported feeling more empowered, energetic, thankful and satisfied. Alexandra Katehakis, M.F.T. wrote in the Huffington Post, be kind to yourself and your ex. She further states, be compassionate to your ex rather than invoking revenge, spite or fear. This may not be your easiest choice. However, it is ultimately the one emotion that can see you safely through conscious uncoupling. The first famous uncoupling couple was Gwyneth Paltrow and Chris Martin. Paltrow stated, "The ideal is to stay married. But if you can't stay married, wouldn't the ideal be that you could still be a family and you could put aside your own stuff long enough to explore — what is this new family and who am I in it?" Paltrow explained. "And Chris is a great ex-husband 'cause he's a very, very willing partner in how to do that. We're constantly putting aside our own stuff and trying to re-imagine something that we don't personally have an example for." They are a true example of how conscious uncoupling benefits everyone. More articles conscious uncoupling in the near future. Please refer to past articles on forgiveness and relationships.

Uhg, Valentine's Day. . . .

ugh, Valentine's Day . . . St. Valentine’s Day for Adults only Ugh, how much does the single person hate St. Valentine’s Day? It is right up there with New Year’s Eve. Is there still time to book a trip? Sole? More single women spent New Year’s Eve with a dog (pet) than with a man. It there time to get a dog? One of my girlfriends is watching the Westminster Dog Show. I know she didn’t plan the show’s date. It appears to be perfect planning by the Westminster Dog Show. What about a project that was just assigned and it has to be completed by tomorrow? Or calling in sick? Or moving to Florida? All of these are just delays, the issues don’t get resolved. However, gifts after the 14th cost much less. Do you make up a Valentine’s Day adventure or tell the truth? Elaine or Jerry, from Seinfeld, for that matter would never admit, they spend February 14, alone. They would dream up a story that was so amazing, no one would believe it. I conducted a very scientific poll with all the men in the break room at work. Their plans were to break up with their girlfriend and run before the holiday. I don’t think they had factored in breakup sex or the possibility if they purchased the gift card and chocolate at sale price there was makeup sex. Stably Married individuals, if that is not an oxymoron by itself, they don’t understand the Valentine Day pressures? “Is it really true YOU did Not receive roses, Godiva, (because there really is no other chocolate, Sorry Russell Stover, my hometown candy), dinner, sexy lingerie and diamonds. If you are in a new relationship or kind of new, what is the proper celebration of . Valentine’s Day? Now there a different added pressure. Is the woman required to give a gift to the man ? When is gift giving required? After a month of dating? After sexual relations and you have confirmed with Bill Clinton it was sex? Or you want sex and you don’t need Bill Clinton to define what you want? In my past, which is one reason why I write for the examiner on breakup relationships, my husband gave me very expensive jewelry while he attended an “educational seminar” planned during the holiday with his female partner, I mean girlfriend, His thought was as long as you received the most expensive gift why did you care? Money could buy his way out of anything. Maybe the best Valentine’s Day was when I was out of town and my significant other of a year, just ignored the day. During our evening call both of us were mad at the other one for doing nothing. Needless to say it was our first and last holiday together. The thought of asking my significant other for his expectations seems very mature. It sounds like the correct way to handle the situation. No one is hurt or left out. Unless, it is suggested, “let’s not do anything for Valentine’s Day.” This never works because one person doesn’t follow the rule and the other person feels like ****. The history of Saint Valentine’s Day is very confusing as it includes at least three Valentines. The romantic version, supported by American Greetings is as follows: St Valentine was a Christian and disagreed with Roman Emperor Claudius II. The Ruler thought single men made better soldiers. St. Valentine was secretly marrying soldiers to their sweethearts. Valentine was thrown in jail. However, being the good person that he was performed one last miracle before his death. He gave the ruler’s daughter her sight. The next day before the execution he wrote her a note signed your valentine. I am also a resident of Hallmark country. History has solved my question. A card is the perfect gift.

ugh, Valentine's Day . . .

St. Valentine’s Day for Adults only Ugh, how much does the single person hate St. Valentine’s Day? It is right up there with New Year’s Eve. Is there still time to book a trip? Sole? More single women spent New Year’s Eve with a dog (pet) than with a man. It there time to get a dog? One of my girlfriends is watching the Westminster Dog Show. I know she didn’t plan the show’s date. It appears to be perfect planning by the Westminster Dog Show. What about a project that was just assigned and it has to be completed by tomorrow? Or calling in sick? Or moving to Florida? All of these are just delays, the issues don’t get resolved. However, gifts after the 14th cost much less. Do you make up a Valentine’s Day adventure or tell the truth? Elaine or Jerry, from Seinfeld, for that matter would never admit, they spend February 14, alone. They would dream up a story that was so amazing, no one would believe it. I conducted a very scientific poll with all the men in the break room at work. Their plans were to break up with their girlfriend and run before the holiday. I don’t think they had factored in breakup sex or the possibility if they purchased the gift card and chocolate at sale price there was makeup sex. Stably Married individuals, if that is not an oxymoron by itself, they don’t understand the Valentine Day pressures? “Is it really true YOU did Not receive roses, Godiva, (because there really is no other chocolate, Sorry Russell Stover, my hometown candy), dinner, sexy lingerie and diamonds. If you are in a new relationship or kind of new, what is the proper celebration of . Valentine’s Day? Now there a different added pressure. Is the woman required to give a gift to the man ? When is gift giving required? After a month of dating? After sexual relations and you have confirmed with Bill Clinton it was sex? Or you want sex and you don’t need Bill Clinton to define what you want? In my past, which is one reason why I write for the examiner on breakup relationships, my husband gave me very expensive jewelry while he attended an “educational seminar” planned during the holiday with his female partner, I mean girlfriend, His thought was as long as you received the most expensive gift why did you care? Money could buy his way out of anything. Maybe the best Valentine’s Day was when I was out of town and my significant other of a year, just ignored the day. During our evening call both of us were mad at the other one for doing nothing. Needless to say it was our first and last holiday together. The thought of asking my significant other for his expectations seems very mature. It sounds like the correct way to handle the situation. No one is hurt or left out. Unless, it is suggested, “let’s not do anything for Valentine’s Day.” This never works because one person doesn’t follow the rule and the other person feels like ****. The history of Saint Valentine’s Day is very confusing as it includes at least three Valentines. The romantic version, supported by American Greetings is as follows: St Valentine was a Christian and disagreed with Roman Emperor Claudius II. The Ruler thought single men made better soldiers. St. Valentine was secretly marrying soldiers to their sweethearts. Valentine was thrown in jail. However, being the good person that he was performed one last miracle before his death. He gave the ruler’s daughter her sight. The next day before the execution he wrote her a note signed your valentine. I am also a resident of Hallmark country. History has solved my question. A card is the perfect gift.

Tax Deferment on Gains under IRC Section 1031

Tax Deferment on Gains under IRC Section 1031 Will the sale of your business or investment properties produce a net gain? Typically, taxes must be paid on that gain within the same tax year, and most people in the market to sell their business know that a gain is necessary to profitably retail the said business. However, most people do not know that Section 1031 sets forth an exception that may allow you to defer payment of the taxes from the gain to future tax years. Provided several conditions are met, many business owners could benefit from the deferment of gain-related taxes. Multiple authors on the subject state, “Professionals involved with advising or counseling real estate investors need to know about tax-deferred exchanges, including realtors, lawyers, accountants, financial planners, tax advisors, lenders, and escrow and closing agents.” Although a number of different business professionals should be familiar with tax deferred exchanges, advice should come from attorneys or accountants, not realtors, financial planners, escrow and closing agents and most lenders. These individuals may have “great ideas”, but in reality, they may have different priorities at stake, and generally speaking, one’s own attorney or accountant has the most information about how tax deferred exchanges would affect their specific assets. Some people do choose to seek help from other professionals; however, the ideas must be discussed with their accountant and/or attorney on how their assets and taxes will be affected. Section 1031 exchanges are excellent tax deferment tools. However, one must remember, professionals involved with advising or counseling real estate investors can be knowledgeable about tax-deferred exchanges, but attorneys and accountant should have the final say on the benefits of tax deferred exchanges on one’s specific portfolio. In order to be eligible for a tax deferred exchange, the properties in question must be like kind properties. Like kind properties are properties that are similar in nature, but this is viewed very broadly. The test for determining whether exchanged properties are of like kind is whether the property is of the same nature or character. A mere difference in grade or quality of the properties does not disqualify the exchange. . Section 1.1031(a)-1(b) provides that the fact that any real estate involved is improved is not material, for that fact relates only to the grade or quality and not its class or kind. Thus, exchange of urban real estate for a ranch or farm is an exchange of property of "like kind." Real property in the United States is like kind property in United States but not in foreign countries. A property in California is not a like kind property to a property in France because “Real property located in the United States and real property located outside the United States are not property of a like kind,” as stated in Section 1031(h)1. Apartment buildings may be exchanged with undeveloped land, fourplexes, single family homes and other real property, except for a residence of the taxpayer. Section 1031 states that no gain or loss shall be recognized if property held for productive use in trade or business or for investment, not including stock in trade or other property held primarily for sale, nor stocks, bonds, notes, chooses in action, certificates of trust or beneficial interest, or other securities or evidence of indebtedness or interest, is exchanged solely for property of a like kind to be held either for productive use in trade or business or for investment. Livestock of different sexes are not property of a like kind. A limited partnership interest and general partnership interest in real estate firm are not like kind property. However, several courts have held that exchanges of real property with considerably different characteristics have been treated as of like kind. Properties that are held in a business or are investment properties are eligible for the tax deferment. Section 1031 exchanges are limited to owners of investment and business properties, and the form of ownership may be: individuals, s corporations, c corporations, partnerships, limited liability companies and trusts. A Section 1031 exchange requires an exchange of properties with the original form of exchange being a simultaneous transfer of relinquished property and the replacement property, with like-kind properties. Investment property includes real estate, improved or unimproved, which is held for investment or income producing purposes. Property used in a taxpayer’s trade or business includes his office, facilities, or place of doing business, as well as equipment used in his trade can also be eligible. The following properties do not qualify under the Section 1031 deferment properties: a personal residence or vacation home, land under development for resale, property purchased to flip or resale, inventory to sell, corporation common stock, partnership interests, limited liability interests and bonds. The IRS reviews the actions of the taxpayer to determine if the property is held for investment or business, and property that is immediately placed for re-sell is considered non-exchange property (for example, purchased property that is flipped). "The legislative history [of § 1031] reveals that the provision was designed to avoid the imposition . . . the non-recognition provisions further defer tax consequences when, notwithstanding an exchange, the taxpayer maintains a continuing interest in similar property.” In this case, the taxpayer attempted to avoid taxes by structuring four exchanges with a relative, and the taxpayer was allowed to void the contract if a Section 1031 exchange was disallowed. The transaction pulled out 13.4 million cash for the taxpayer. The House committee wrote: “Because a like-kind exchange results in the substitution of the basis of the exchanged property received, related parties have engaged in like-kind exchanges of high basis property for low basis property in anticipation retained property. The committee believes that if a related party exchange is followed shortly thereafter by a disposition of the property, in effect, 'cashed out' of the investment and the original exchange should not be accorded non-recognition treatment”. The Taxpayer received a notice of deficiency and appealed. The Court citing legislative history in its decision affirmed the Commissioner. A knowledgeable tax attorney would have advised against this transaction because of the legislative history, and it is crucial that individuals considering a tax deferred exchange consult their accountant or attorney before any decisions are made. In order for a tax deferred exchange to be approved, several conditions must be met in addition to the like kind property rule. The conditions in a tax deferred exchange that must be met are: a relinquished property must be sold, and a replacement property must be purchased with the new property and equipment being like kind properties. There are specific time limitations that must be complied with, and eligibility for tax deferred exchanges can be denied if these time limits are not met. The replacement property must be identified by midnight of the 45th day after the taxpayer transfers the relinquished property (45-day identification period). Secondly, the replacement property must be received by midnight of the earlier of the first of 180th date after the taxpayer transfers the relinquished property; or (2) the due date including extensions of the taxpayer’s income tax return for the taxable year in which the taxpayer transferred the relinquished property. Since the deferment of tax is governed by the IRC, there are exceptions. Originally, the IRS said the sale and purchase must occur at the same time or in other words, there could be NO amount of time between the transfer of the relinquished property and purchase of replacement property in an exchange. This was changed in Starker v. U.S. . The Starkers had a delayed purchase of a replacement property, and the IRS denied the tax deferment. The Starkers paid their taxes and filed a lawsuit in the District Court in Portland, Oregon.# District Judge Gus Solomon ruled in favor of the Starkers without mentioning the time of the transactions, and the IRS filed suit against Taxpayer T.J. Starker on a different exchange case. Judge Solomon reversed his prior decision. Under the SAME facts, he held there was no exchange and that a taxable sale had taken place. This case reversed the first decision. Judge Solomon wrote he was mistaken in Starker I and stated, “My opinion in Starker I has been given wide publicity. I believe that it is desirable that my opinion in this case be published to prevent the mischief that I believe Starker I has caused.” He further stated “that T.J. Starker had exchanged real property for a promise that was not like-kind under the statute and the growth was INTEREST.” The case was appealed to the Ninth Circuit which ruled that Starker I was precluded by collateral estoppels. Most importantly, the Court could not find a requirement for simultaneity in the 1031 tax code. The Starker trilogy opened the door for deferred exchanges. They are more complex but allow flexibility. A reverse exchange allows for acquisition of replacement property through an exchange accommodation title. The replacement property may be held for up to 180 days while the relinquished property is sold. Qualified exchange accommodation services are used to assist in a Section 1031 exchange. The services will provide the qualified exchange accommodation agreement (QEAA), closing agent, land title holder, to assist in the location of a replacement property. The service costs are extremely high. Most title companies will provide the QEAA for a minimal cost of preparing the agreement. The IRS allows an additional 5 days if a QEAA agreement is used. The additional five days; originates in basic contract law, that a contract is voidable within the first three or five days. The IRS will treat an exchange provider as the beneficial owner of property for federal income tax purposes if the QEA provider holds title . The property held in a QEAA may qualify as either replacement of relinquished property. The QEAA may receive cash on an exchange, without triggering a boot or gain, and the cash shall be included in the replacement property’s basis. Because of the Starker and Terayu case, the Internal Revenue Service continues to review transactions that “park” properties due to the increased risk of tax fraud. A parked property is one that is originally owned by one family member, then exchanged and sold to another family member and resold to the original family member. While the property was “parked” the lot becomes improved or family members remove cash as in the Terayu case. A 1031 exchange requires an exchange of properties with the original form of exchange being a simultaneous transfer of relinquished property and the replacement property. To receive the full benefit of the tax deferment, the replacement property should have a greater value then the original property. If cash is received, then the taxpayer will have taxes due on the amount of the cash. Cash may also be described as the “boot” and include money, debt relief, or the fair market value of "other property" received by the taxpayer. The term “Boot” is not defined in the Internal Revenue Code but has its roots in old English meaning cash or equivalents. The equivalents are notes, or debt instruments that reduce the value in the exchange. When the value of the exchange is reduced then the tax benefit is reduced. For the maximum tax deferral, the value of the replacement property should be greater than the relinquished property. The IRS allows for postponement of specific acts in Section 1031 when the taxpayer is serving in the Armed Forces of the United States or serving in support of such Armed Forces, in a combat zone, or with respect to a contingency operation. Presidential disaster areas receive postponement as the Service may authorize postponement. To use IRC Section 1031, Form 8824, Like-Kind Exchanges must be filed with your tax return of the year of the exchange. The form requires: a description of the property, dates the property was identified and transferred, the value of the property, value of the property received, gain or loss on the transaction, boot, adjusted basis and whether there is a relationship between the parties to the exchange. If a taxpayer does not meet one of the time exceptions, then the limit must be complied with. For example, Orville and Helen Christensen, taxpayers, appealed the tax court's decision of deficiency in tax of $ 218,789 for 1989. The tax court found that the taxpayers' transfer of a rental property did not qualify as a like-kind exchange under 26 U.S.C. § 1031(a) because the exchange was completed after the due date for their tax return. Taxation laws require that the time limitations be met. The tax court found that the taxpayer presented no credible evidence that they had identified the Pleasant Hill or Skyland properties as replacement properties during the applicable 45-day period. That finding is not clearly erroneous. Attorneys understand the procedural issues when time requirements are not meet. The Court has ruled that citizens need to know the filing dates of individual, and probate estates. If used correctly, tax deferred exchanges can be very beneficial to business owners and investors because it allows deferred taxation. Deferred taxation can assist in investment growth for the future. Although Section 1031 was a long legal history with set rules and guidelines about the specifications of exchanges, a knowledgeable taxation attorney or accountant can provide the necessary knowledge to enhance exchange deferment. 26 USC § 1031 - Exchange of property held for productive use or investment (a) Nonrecognition of gain or loss from exchanges solely in kind (1) In general No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment. (2) Exception This subsection shall not apply to any exchange of— (A) stock in trade or other property held primarily for sale, (B) stocks, bonds, or notes, (C) other securities or evidences of indebtedness or interest, (D) interests in a partnership, (E) certificates of trust or beneficial interests, or (F) choses in action. For purposes of this section, an interest in a partnership which has in effect a valid election under section 761 (a) to be excluded from the application of all of subchapter K shall be treated as an interest in each of the assets of such partnership and not as an interest in a partnership. (3) Requirement that property be identified and that exchange be completed not more than 180 days after transfer of exchanged property For purposes of this subsection, any property received by the taxpayer shall be treated as property which is not like-kind property if— (A) such property is not identified as property to be received in the exchange on or before the day which is 45 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (B) such property is received after the earlier of— (i) the day which is 180 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (ii) the due date (determined with regard to extension) for the transferor’s return of the tax imposed by this chapter for the taxable year in which the transfer of the relinquished property occurs. (b) Gain from exchanges not solely in kind If an exchange would be within the provisions of subsection (a), of section 1035(a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain, but also of other property or money, then the gain, if any, to the recipient shall be recognized, but in an amount not in excess of the sum of such money and the fair market value of such other property. (c) Loss from exchanges not solely in kind If an exchange would be within the provisions of subsection (a), of section 1035(a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain or loss, but also of other property or money, then no loss from the exchange shall be recognized. (d) Basis If property was acquired on an exchange described in this section, section 1035 (a), section 1036(a), or section 1037 (a), then the basis shall be the same as that of the property exchanged, decreased in the amount of any money received by the taxpayer and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized on such exchange. If the property so acquired consisted in part of the type of property permitted by this section, section 1035 (a), section 1036(a), or section 1037 (a), to be received without the recognition of gain or loss, and in part of other property, the basis provided in this subsection shall be allocated between the properties (other than money) received, and for the purpose of the allocation there shall be assigned to such other property an amount equivalent to its fair market value at the date of the exchange. For purposes of this section, section 1035 (a), and section 1036 (a), where as part of the consideration to the taxpayer another party to the exchange assumed (as determined under section 357 (d)) a liability of the taxpayer, such assumption shall be considered as money received by the taxpayer on the exchange. (e) Exchanges of livestock of different sexes For purposes of this section, livestock of different sexes are not property of a like kind. (f) Special rules for exchanges between related persons (1) In general If— (A) a taxpayer exchanges property with a related person, (B) there is nonrecognition of gain or loss to the taxpayer under this section with respect to the exchange of such property (determined without regard to this subsection), and (C) before the date 2 years after the date of the last transfer which was part of such exchange— (i) the related person disposes of such property, or (ii) the taxpayer disposes of the property received in the exchange from the related person which was of like kind to the property transferred by the taxpayer, there shall be no nonrecognition of gain or loss under this section to the taxpayer with respect to such exchange; except that any gain or loss recognized by the taxpayer by reason of this subsection shall be taken into account as of the date on which the disposition referred to in subparagraph (C) occurs. (2) Certain dispositions not taken into account For purposes of paragraph (1)(C), there shall not be taken into account any disposition— (A) after the earlier of the death of the taxpayer or the death of the related person, (B) in a compulsory or involuntary conversion (within the meaning of section 1033) if the exchange occurred before the threat or imminence of such conversion, or (C) with respect to which it is established to the satisfaction of the Secretary that neither the exchange nor such disposition had as one of its principal purposes the avoidance of Federal income tax. (3) Related person For purposes of this subsection, the term “related person” means any person bearing a relationship to the taxpayer described in section 267 (b) or 707 (b)(1). (4) Treatment of certain transactions This section shall not apply to any exchange which is part of a transaction (or series of transactions) structured to avoid the purposes of this subsection. (g) Special rule where substantial diminution of risk (1) In general If paragraph (2) applies to any property for any period, the running of the period set forth in subsection (f)(1)(C) with respect to such property shall be suspended during such period. (2) Property to which subsection applies This paragraph shall apply to any property for any period during which the holder’s risk of loss with respect to the property is substantially diminished by— (A) the holding of a put with respect to such property, (B) the holding by another person of a right to acquire such property, or (C) a short sale or any other transaction. (h) Special rules for foreign real and personal property For purposes of this section— (1) Real property Real property located in the United States and real property located outside the United States are not property of a like kind. (2) Personal property (A) In general Personal property used predominantly within the United States and personal property used predominantly outside the United States are not property of a like kind. (B) Predominant use Except as provided in subparagraphs (C) and (D), the predominant use of any property shall be determined based on— (i) in the case of the property relinquished in the exchange, the 2-year period ending on the date of such relinquishment, and (ii) in the case of the property acquired in the exchange, the 2-year period beginning on the date of such acquisition. (C) Property held for less than 2 years Except in the case of an exchange which is part of a transaction (or series of transactions) structured to avoid the purposes of this subsection— (i) only the periods the property was held by the person relinquishing the property (or any related person) shall be taken into account under subparagraph (B)(i), and (ii) only the periods the property was held by the person acquiring the property (or any related person) shall be taken into account under subparagraph (B)(ii). (D) Special rule for certain property Property described in any subparagraph of section 168 (g)(4) shall be treated as used predominantly in the United States. (i) Special rules for mutual ditch, reservoir, or irrigation company stock For purposes of subsection (a)(2)(B), the term “stocks” shall not include shares in a mutual ditch, reservoir, or irrigation company if at the time of the exchange— (1) the mutual ditch, reservoir, or irrigation company is an organization described in section 501 (c)(12)(A) (determined without regard to the percentage of its income that is collected from its members for the purpose of meeting losses and expenses), and (2) the shares in such company have been recognized by the highest court of the State in which such company was organized or by applicable State statute as constituting or representing real property or an interest in real property.

Class-Your Survival Guide To Divorce

FREE Discussion On How to Help Your Divorcing Friend During the Holidays
Please bring your questions.
Wednesday, December 07, 2011 Plaza Library 4801 Main Street, Kansas City, Missouri 64112

6:00 PM - 9:00 PM Survival Guide to Divorce Plaza Library Small Meeting Room


THIS CLASS IS NOT GIVING LEGAL ADVICE, JUST COMMENTARY AND OPINION, COUNSEL SHOULD ALWAYS BE CONSULTED FOR ADVICE FOR A SPECIFIC LEGAL PROBLEM