IRS to Look Harder at Partnership Swap & Drop Transactions
It appears that further and closer scrutiny by the IRS maybe in store for partnership swap and drop transaction strategies. The IRS has released its draft new draft 2008 Partnership Income Tax Return (IRS Form 1065), which includes two questions targeting 1031 exchange transactions where a partnership completes what is called a swap and drop or a drop and swap 1031 exchange strategy. So, Swap & Drops should beware.
William L. Exeter
President and Chief Executive Officer
EXETER 1031 Exchange Services, LLC
A Qualified Intermediary (Accommodator) for 1031 Exchanges
EXETER Fiduciary Services, LLC
A Private Professional Fiduciary Services Company
http://www.exeter1031.comhttp://www.exeterdst.com