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He shouldn’t have any mortgage boot as long as the new debt is more than the old debt. There isn’t any depreciation recapture if the new property has a higher Basis than the old property.

I think I figured out how to do this. Google is a wonderful thing. Tom Modesto, CA

Ain't Judy just the BEST?!

I had a client in a similar situation last year. I had her call IRS and when they pulled up her record they told her she was clear as far as their record was concerned. The state of California on the other hand wanted returns filed even though there was little owed. California goes after every single penny whereas IRS is a little more lenient.

They all walk to work? What a co-incidence, right? It's a miracle!! Yes rule is utterly stupid, but it already is basking in the bright sunlight of day. In particular, non-religious people have been banging on tax-exempt status for 40 years in order to raise property taxes on churches. The same crowd is not as anxious to tax hospitals, schools, etc. I hope the constituency wakes up and bangs on congress to rescind this sneaky provision. I agree with others - apparently it was intentionally put in.

Here's a collection of useful links and articles: https://www.councilofnonprofits.org/how-tax-cuts-jobs-act-impacts-nonprofits

While refunds older than 3 years are forfeit, on occasion they will apply those amounts to later-year taxes due. It doesn't hurt to ask.

And... If he owes tax in any of those prior years, he is liable for paying them. Oldest first. I always recommend mailing the oldest first, then wait 2-3 weeks and mail the next one. Prevents confusion at the IRS.

Start with 2008 first, as there may be carryover issues that go forward. Realize that refunds owed for past 3 years are forfeited.

Thanks Judy. That closes the circle nicely.

I merged the two topics and modified the title to be more descriptive. I'm also going to post a link to this topic in the pinned post on the TCJA that appears at the top of Gen'l Chat.