If the taxpayer holds the investment for at least 7 years, the basis is increased by an additional 5 percent of the deferred gain
, resulting in the taxpayer recognizing 85% of the initial capital gain.
In 2007, the Company received net proceeds of approximately $58 million from the closing of this transaction and recorded a corresponding net deferred gain
as a result of guarantying a portion of the property's indebtedness.
The deferred gain
from the sale of employer stock to an ESOP generally must be recognized upon a subsequent sale or exchange of the qualified replacement property.
OfficeMax, which has carried a USD180m deferred book gain on its consolidated balance sheet related to its investment in BCH in October 2004, expects the redemption of the Series A units to trigger recognition of a pre-tax operating gain of approximately USD68m, representing the portion of the deferred gain
attributable to the Series A units.
Core net income was also affected by the recognition of a P2-billion deferred gain
relating to the transfer of shares of Manila Electric Co.
338(h)(10), Target would be deemed to liquidate, meaning the stock of Target (the item to which the deferred gain
relates) would no longer exist as an asset within the Parent consolidated group.
He'll owe tax on 25% of the deferred gain
if he sells his Big Bank Co.
Under the typical installment sale, deferred gain
is eventually recognized by either the seller or the seller's heirs.
AAWW's results for 2008 are expected to include a previously announced deferred gain
of about USD155m (pre-tax) related to DHL Express' investment in a 49% equity interest in Polar Air Cargo Worldwide Inc.
and amortization of a deferred gain
on the sale of a building.
The Browns' Tax Savings From Combining IRC sections 121 and 1031 Florida beach cottage Basis $ 200,000 Accumulated depreciation $ 42,000 Sales price $ 800,000 Closing costs $ 38,000 Gain from sale Sales price $ 800,000 Adjusted basis $(158,000) Closing costs $ (38,000) Realized gain $ 604,000 Excluded gain section 121 $ 500,000 Deferred gain
section 1031 $ 104,000 Recognized gain $ -- Tax savings Excluded gain ($500,000 x 15%) $ 75,000 Sec.
The Corporation recorded a pre-tax deferred gain