IRS Guidance Addresses Qualified Intermediary Defaults |
Revenue Procedure 2010-14
March 5, 2010 |
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Revenue Procedure 2010-14, issued March 5, 2010, provides a safe harbor method of reporting gain or loss for Taxpayers whose like-kind exchanges fail as a result of a Qualified Intermediary (QI) default.
The Rev. Proc. is effective for taxpayers whose like-kind exchanges failed due to a QI default occurring on or after January 1, 2009.
Additionally, Taxpayers who are within the scope of the Rev. Proc. may (subject to certain limitations) file an original or amended return to report a failed like-kind exchange resulting from a QI default that occurred prior to January 1, 2009.
In brief, the Rev. Proc. addresses those scenarios where a Taxpayer attempts, in good faith, to complete a like-kind exchange utilizing the services of a QI.
If a QI is unable to transfer replacement property to the Taxpayer as a result of the QI defaulting and becoming subject to a bankruptcy or receivership proceeding, a Taxpayer may delay any gain recognition until the taxable year in which the Taxpayer actually receives a payment attributable to the relinquished property.
Please call us at 866-677-1031 if you'd like to receive a complete copy of Revenue Procedure 2010-14 or you can view it on our website here:
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