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Yes, it's very interesting how some clients will as a knee jerk reaction avoid spending any money on legal fees or spend any extra money on extra tax research/consultation

A like-kind exchange has to go through a qualified intermediary. Tell your client to contact one to see if his scheme is possible.

Did the county actually take possession and title of the property. But if the county took possession and title, then sold the property that would change my answer. There would then be three transactions, the first being the foreclosure by the county, which would be treated as a sale for all three brothers offset by DOD adjusted basis. The second transaction would be the purchase by brother A from the county for $79,000. Off the top of my head I don't think that would be treated as a related party transaction, but I would look into it. The third transaction would be the final sale by A of $102,000 offset by $79,000 basis.

I agree with what you are saying. I think it is a good idea to lay out all the options for the client and let him decide which direction he wants to go. As Lee B pointed out the "Build to Suit" route is complicated and risky, but client should be aware of the option.

From an AICPA source: Another potential structure is to insert a "straw man" on the front end to own and construct the property. For example, an exchanger could locate a builder who will act as the straw man and acquire land or a building to be renovated and construct the desired facility or make the requested renovations to what will be the replacement property. In this example, the builder is the owner of the project while the construction is taking place. This means that the exchange process has not started and, more importantly, that the 180-day exchange period has not started, so any construction delays are not potentially disqualifying. When the replacement property is ready, the exchange can be executed using a standard forward exchange. Under the straw man exchange structure: An unrelated party acts as a straw man to own the project while construction or renovation is taking place; The actual exchange does not happen until the relinquished property is sold and the replacement property is ready for use; A standard forward exchange can be executed; Construction or renovation can begin before the sale of the relinquished property; and The exchange can be further delayed if a buyer for the relinquished property is not identified until after the replacement property is available.

Isn't it 2022 software for returns beginning in 2022? (My brain's fried right now, but giving you something to research.) And, I don't use ATX, but I e-filed Form 7004 in ProSystem fx.

Is the gain substantial and have you calculated the tax on the gain? Is it worth it to do the exchange and take on the risk of trying to fit the transaction into the like-kind shoe? What is the economic reality of the situation going sale vs exchange? Tom Longview, TX

My little doggers - Vinny - passed away a few weeks ago. He was with me for 14 years and was a major part of my tax practice as the social and welcoming committee. He had his own Instagram and I swear I got clients because of him. We had gotten him in January. We live in western NY and my husband is the town highway superintendent. So in January, he's pretty busy with roads. When I called him to go down to the house and check on my new puppy and he told me he was too busy, I started bringing him to work with me. He peed on lots of clients that year, and W2s and tax returns. As soon as he heard the door open, he'd be up and running to see who it was. I had a number of clients who would bring him toys and treats. I'm missing him!