IRC 1031 Property Exchange Research Paper Example | Topics and Well Written Essays - 750 words - 1

IRC 1031 Property Exchange - Research Paper Example According to the Federal Income Tax Law, capital gains on the disposal or the realization of an asset is included in the tax base when they accrue and taxed2. However, according to the IRC Section 1031, no gain or loss will be recognized on an exchange of a property that has been held for productive use in business or trade or for investment, if that property has been exchanged solely for another property of like-kind for the purpose of holding it either for productive use in business, trade or investment3. Mrs Helen, for you to be exempted from paying tax on the capital gains, these conditions must be met: the gross acquisition price of the replacement like-kind real property should be equal to or greater than the gross net sales price of the relinquished property; and the equity received from the realization of the relinquished real estate property should be used to acquire the replacement like-kind property4. However, your case was special as it involved co-op shares. The treatment of co-op shares raises some confusion as whether it is a real property and qualifies for an exchange. In Private Letter Ruling 200631012, in 2006, the Internal Revenue Service concluded that shares in a cooperative apartment situated in New York constitute real property for the purposes of like-kind exchange rules. In making this ruling, the Internal Revenue Service argued that the New York law determined whether the interest in cooperative apartment amounted to a real property and several New York statutes were already regarding the interest in cooperative apartment in the same manner as interest in real property5. In their rulings, New York courts argue that interests in cooperatives are intangible personal property. In a case involving Danforth v. McGoldrick, the Supreme Court held that whenever an individual acquires stocks in cooperative, then that person purchases shares in a corporation giving rise to contractual rights to occupancy. In another case, of re Miller’s

Assessment one - The role of ethics in Journalism Essay

Assessment one - The role of ethics in Journalism - Essay Example Umpteenth number of times the media has been blamed to be inaccurate and biased (â€Å"Ethical Issues in Journalism†). Englehardt and Barney express that utilitarianism â€Å"declares an action, intention or principle should be judged by the overall immediate outcomes† (16). The theory of utilitarianism rests on the principle of utility, where every action is approved or disapproved as per the propensity it seems to have with the purpose of augmenting or diminishing happiness of the part whose interest is in question (Harrison 67). Petrick & Quinn (48) suggest that utilitarianism signifies that the ethical value of an action is dependent on yielding the greatest good for the greatest number of people. Applying this concept to journalism ethics involves the practice of journalism in a technical sense into conflict with the corporate values (Breit 213). Although journalism regards ethical value on the basis of its effect on journalists’ potential to supply information, the media corporation calculates ethical values from the viewpoint of maximizing investor wealth (Breit 213). As per Sta tman, living according to utilitarianism implies â€Å"caring about principles, rules and obligations, not about real human beings† (7). According to Mills, the principle of utilitarianism is that the purpose of ethics is to direct people in performing things that will result in making the world a better place (Smith 47-52). In short, the utilitarians expect people to endeavor to perform in a manner that will yield â€Å"the greatest good for the greatest number† (Smith 47-52). What actually matters is the consequences of our actions and not our motives or intentions (Smith 47-52). However, it is not always possible to determine the consequences of our actions (Smith 47-52). For instance, a reporter may think that a story about teen suicide may enable the schools and the public to understand and