Real estate and end of year tax planning.

Posted by Arthur Rubin on November 15, 2006, 10:06 pm

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I'm sure this is obvious, but I'm not really thinking
straight at the moment.

Hypothetically, suppose a real estate escrow opens in 2006
and closes in 2007.

Is the gain reportable in 2006 or 2007?

Are withheld taxes attributable to 2006 or to 2007?

Are withheld states taxes deducible (for Federal purposes)
in 2006 or 2007?

I'm pretty sure the answers are all 2007, but I may be
missing something.

--
Arthur L. Rubin ronnirubin@sprintmail.com

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Posted by A.G. Kalman on November 17, 2006, 1:20 am

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Arthur Rubin wrote:

> I'm sure this is obvious, but I'm not really thinking

> straight at the moment.

> Hypothetically, suppose a real estate escrow opens in 2006

> and closes in 2007.

> Is the gain reportable in 2006 or 2007?

> Are withheld taxes attributable to 2006 or to 2007?

> Are withheld states taxes deducible (for Federal purposes)

> in 2006 or 2007?

> I'm pretty sure the answers are all 2007, but I may be

> missing something.

Gain: Reported in 2007
Taxes (assumes you meant real property taxes): Reported in
the year the taxes are actually paid to the tax collector.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by San Diego CPA on November 17, 2006, 1:20 am

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> I'm sure this is obvious, but I'm not really thinking

> straight at the moment.

> Hypothetically, suppose a real estate escrow opens in 2006

> and closes in 2007.

> Is the gain reportable in 2006 or 2007?

> Are withheld taxes attributable to 2006 or to 2007?

> Are withheld states taxes deducible (for Federal purposes)

> in 2006 or 2007?

> I'm pretty sure the answers are all 2007, but I may be

> missing something.

there's no reportable (taxable) event until the transaction
closes which in these facts is 07, this includes the tax
withholdings which are done at the close.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>