The tax rules for gifts and related party transactions are very similar and simple. Here is a simple post that outlines the tax rules regarding gains and losses regarding gifts and related party transactions.
Correctly picking the right filing status is extremely important when filing a individual tax return. Filing the incorrect status can negatively impact a tax return. Certain filing statuses are given more leniency than others regarding credits and deductions. It is important to distinguish between each filing status.
Under federal taxation rules, gains recognized and realized from the sale of an asset are considered taxable. However gains resulting from a like kind exchange are not taxable. A like kind exchange is defined as an exchange of property that is tangible, implemented in a business and is similar in nature. Realty exchanged for realty is considered a like kind exchange, and personal property exchanged for personal property is considered a like kind exchange. Certain assets such as inventory, securities, partnership interests, and real property in different countries when exchanged do not qualify as like kind property. Like kind exchanges are reported on form 8824.