Week 8 Essay Example | Topics and Well Written Essays - 250 words - 5

Week 8 - Essay ExampleThus enforcing the change will promote saving (Jacqueline, 2012).Suppose there deuce family members with US citizenship one works in Australia while the other in US. The one in US had purchased a piece of land while the one in Australia owns a rental house in Australia. The two family members decide to exchange the ownership of the two properties a house and a land.Postponing paying valuate is one of the strategies of maximizing tax avoidance and minimizing the IRS scrutiny (Jacqueline, 2012). One pays tax whenever he/she sells a space and gains. To avoid the case of obvious gain (which will make you pay tax), one can flat reinvest the proceeds in a similar property as part of a qualifying like-kind exchange. For example, hypothesize you want to sell off your land and acquire a rental house. You may have a gain in cash if your land has higher none value compared the rental house you want to buy if there is cash exchange. To avoid tax, you can find a renta l house with higher value than your land and exchange. Thus although you may have gained, it a like-exchange for similar property hence you will not pay