Congress Considers National Data Privacy Law

Written by Richard A. Chapo

Continued from page 1

Will It Pass?

The new legislation has a very good chance of becoming federal law. Sponsored by two Republicans and two Democrats,repparttar bill appears to have bipartisan support. Avoidingrepparttar 150517 vicious partisan politics on Capital Hill is halfrepparttar 150518 battle for any legislation.

Corporate America also appears to be getting behindrepparttar 150519 bill. Although this might seem surprising at first, there is a good reason. States including California, Washington and Georgia have already enacted similar laws, but each requires different actions. A federal law, however, will trump all ofrepparttar 150520 state laws and create a uniform requirement for businesses. From a practical standpoint, Corporate America would prefer one standard instead of many.

The new bipartisan legislation is a welcome step inrepparttar 150521 effort to fight identity theft. Many more steps, however, will be required. You should continue to closely review your credit card statements and credit reports for any unauthorized charges.

Richard Chapo is with - Go to our article section to read more business law articles.

What is Tax-Deferred Exchange?

Written by Neda Dabestani-Ryba

Continued from page 1
Acquisition Property: Replacement property Actual Receipt: Whenrepparttar Exchanger actually receivesrepparttar 150476 funds fromrepparttar 150477 sale ofrepparttar 150478 Relinquished Property. Receipt of cash byrepparttar 150479 Exchanger before he receivesrepparttar 150480 Replacement Property may be enough to destroyrepparttar 150481 tax deferred treatment ofrepparttar 150482 transaction. Adjusted Basis: Generally speakingrepparttar 150483 adjusted basis is equal torepparttar 150484 purchase price plus capital improvements less depreciation. Transactions involving exchanges, gifts, probates and receiving property from a trust can have an impact on calculatingrepparttar 150485 property's adjusted basis. The taxpayer's C.P.A. or tax advisor isrepparttar 150486 party to look to for these types of questions. Boot: Boot is any type of property received or given up in an exchange that does not meetrepparttar 150487 like kind requirement. Generally speaking, receiving boot will triggerrepparttar 150488 recognition of gain and taxes. Ifrepparttar 150489 Exchanger receives boot, they will be taxed. Boot added or given up byrepparttar 150490 Exchanger does not necessarily trigger a taxable event. In a real property exchange, boot received is any type of property received byrepparttar 150491 exchange which is not real property held for investment or productive use in a trade or business. Cash Boot: Cash Boot consists of cash and nonqualifying property. A car, a boat or receipt ofrepparttar 150492 beneficial interest in a promissory note are all examples of Cash Boot. Mortgage Boot: Mortgage Boot consists ofrepparttar 150493 secured debt given up and received as part ofrepparttar 150494 same exchange. Ifrepparttar 150495 exchanger increasesrepparttar 150496 amount of debt onrepparttar 150497 Replacement Property versesrepparttar 150498 Relinquished Property, they have given mortgage boot. Ifrepparttar 150499 exchanger decreasesrepparttar 150500 amount of debt onrepparttar 150501 Replacement Property versesrepparttar 150502 Relinquished Property, they have received mortgage boot. Generally speaking, mortgage boot received triggersrepparttar 150503 recognition of gain and it is taxable, unless offset by Cash Boot added or given up inrepparttar 150504 exchange. Constructive Receipt: Even ifrepparttar 150505 Exchanger does not actually receiverepparttar 150506 proceeds fromrepparttar 150507 disposition ofrepparttar 150508 Relinquished Property,repparttar 150509 exchange will be disallowed ifrepparttar 150510 Exchanger is treated as having constructively receivedrepparttar 150511 funds. Delayed Exchange: Also called non-simultaneous, deferred and Starker. A delayed exchange is a tax deferred exchange whererepparttar 150512 Replacement Property is Received afterrepparttar 150513 transfer ofrepparttar 150514 Relinquished Property. In a delayed exchangerepparttar 150515 Exchanger must identify all potential Replacement Properties within 45 days fromrepparttar 150516 transfer ofrepparttar 150517 Relinquished Property andrepparttar 150518 Exchanger must Receive all Replacement Properties within 180 days orrepparttar 150519 due date ofrepparttar 150520 Exchanger's tax return whichever occurs first. Like-Kind Property: Refers torepparttar 150521 nature ofrepparttar 150522 propertyrepparttar 150523 Exchanger gives up or receives as part ofrepparttar 150524 same tax deferred exchange transaction. In order to qualify as like kindrepparttar 150525 property given up or received must be held for productive use in a trade or business or held for investment to qualify as like-kind. Realized Gain: Refers to a gain that is not necessarily taxed. In a successful exchangerepparttar 150526 gain is realized but not recognized and therefore not taxed. Recognized Gain: Refers to gain which is subject to tax. When someone disposes of property at a gain or profit in a taxable transfer such as a sale,repparttar 150527 gain is not only realized, but recognized and subject to tax. Relinquished Property: The property given up byrepparttar 150528 exchange to startrepparttar 150529 1031 exchange transaction. This property usually passes through an accommodator before transferring torepparttar 150530 ultimate Buyer. Reverse Exchange: An exchange whererepparttar 150531 Exchange acquires or gains control ofrepparttar 150532 Replacement Property before disposing ofrepparttar 150533 Relinquished Property. Simultaneous Exchange: Also referred to as a concurrent exchange. A simultaneous exchange is an exchange transaction whererepparttar 150534 Exchanger transfers out ofrepparttar 150535 Relinquished Property and Receivesrepparttar 150536 Replacement Property atrepparttar 150537 same time. Transfer Tax: A tax usually assessed by a city or county onrepparttar 150538 transfer of property. It may be based on equity or value. When structuring a multi-party exchange an exchange agreement will usually call for direct deeding to eliminate additional transfer tax. April 15th A taxpayer must identify replacement property within 45 days afterrepparttar 150539 transfer ofrepparttar 150540 relinquished property, and acquirerepparttar 150541 replacement property withinrepparttar 150542 earlier of 180 days ofrepparttar 150543 relinquished property closing, orrepparttar 150544 due date ofrepparttar 150545 taxpayer's tax return. This means that 1031 escrows that close after Oct. 18 will not haverepparttar 150546 full 180 days to acquirerepparttar 150547 replacement property unlessrepparttar 150548 taxpayer files an extension. Contact your CPA or tax attorney for advise.

Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity

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