Scenario : LikeKind Exchange Gone Wrong
Taxpayer intends to do a Section exchange of a rental property.
Identifies a replacement property and uses a qualified intermediary.
Within the day identification window, the replacement property deal falls apart.
The taxpayer misses the day exchange window and receives the cash proceeds from the qualified intermediary.
Original Property Basis: $ Sale Price: $
Interest and Dividend Income: $
Itemized Deductions: $
Allowable deduction for selfemployment tax: None
Calculate:
AGI, Taxable Income, and Total Tax Liability resulting from the failed exchange.
Explore potential "failed exchange" strategies like reverse exchanges.
