*Note: This Week In Tax will not be publishing next week. Happy Thanksgiving and enjoy your holiday!
In the latest edition of This Week in Tax, we answer a common question on navigating a 1031 exchange transaction when one partner wants to cash out. Plus, the latest on a proposed amendment affecting cryptocurrency reporting requirements introduced by the Infrastructure Investment and Jobs Act and an IRS notice on the deductibility of meals. Read on for more:
It seems like every week we get some variation on this question: our partnership is selling its property, we want to do a 1031 exchange to defer the gain but some partners want to take their cash and leave. It doesn’t seem unreasonable but the interplay of the partnership tax regulations and the rules for 1031 exchanges makes it difficult to accomplish.
President Biden had yet to sign the Infrastructure Investment and Jobs Act (the “Act”) when members of the Senate decided it was time to make some changes to one of the more controversial revenue raising provisions of the Act – the digital asset information reporting requirements.