IRC 1031 Property Exchange Research Paper Example | Topics and Well Written Essays - 750 words - 2

IRC 1031 Property Exchange - Research Paper Example Following that you have basically done a replacement to evade the tax burden. The property at hand is involving one state which is California. These means that this will just be treated as just deferral not a major one. Following that there is an investor willing to buy the building at a price of $850,000 then this shows that there will be a gain. The decision to buy a house via cooperative shares is a tricky decision that needs a lot of research to avoid losses which maybe associated. You are required therefore to fill a form by the Franchise tax board (FTB). â€Å"Form FTB 3840 must be filled for the year in which the exchange was completed and for each successive year until the California source deferred gain is noted.† (Federal laws, section 1031). The initial cost as per your report was $500,000, the depreciation deduction total $120,000 which attracts a corporate tax of 30% (California tax rates). This means that the net present value is $380,000 ($500,000-$120,000). Corporation tax will be charged. Generally the average is 30%. The charged amount is only to the corporation which will. Your two shares of $42,000 m. Stock in trade or other property held primarily for sale shall not tax excepted (IRS report Sec 1031, 2014). Secondly, other property and flip taxes will be charged (Jay Romano, 1995). For instance in real estate, taxes are part of the expenses in San Diego. It varies between different states in America. Under California state law (Prop 13) Real property is reassessed only when there is a change of ownership. In our case the investor will attract an insurance tax rate of 1% plus any bonds, fees or special charges. There is an acquisition of asset too by you meaning that a tax rate shall be charged (California state law, Prop 13. Fiscal year begins July 1 and April 10 is the deadline for the second payment as per the law. These are important vital dates you need to

Oil Spills Crisis Essay Example | Topics and Well Written Essays - 750 words

Oil Spills Crisis - Essay Example According to the Shell Company, the volume of oil spilled was about 216 tones. The oil was leaked at a distance of approximately 180 km from Aberdeen’s Scottish port. This oil slick covered an area of more than 37 sq km. The recent oil spill has done a lot to tarnish the image of the Royal Dutch Shell in the eyes of the public. The Royal Dutch Shell has conventionally remained out of the focus of campaigners. The company has traditionally maintained a desecrated reputation whether the campaigners were concerned with environmental health and safety, human rights’ violation or climatic change. â€Å"In September 1993 the TGWU (transport and general workers union) launched a nationwide boycott of Shell petrol stations due to union derecognition at their Shell haven refinery in Essex† (Corporate Watch, n.d.). The recent oil spill furthered people’s hatred for the company, and this can have serious implications upon the profitability of Shell’s business. The crisis was very damaging as oil spill exposes the marine life to numerous health hazards. Oil spill contaminate the water and reduce the content of oxygen in it that is vital to the existence and survival of the marine life. In addition to that, the contaminated water can not be used for any kind of purpose. Discussing the hazardous consequences of this massive oil spill, RSPB Scotland’s director, Stuart Housden said, â€Å"Thousands of young razorbills, puffins and guillemots are flightless and dispersing widely in the North Sea during late summer, so they could be at serious risk if contaminated by this spill† (Housden cited in Crisis Boom, 2011a). Similar oil spills have caused irrecoverable loss to the birds and marine life in the past. In the past, about 1000 crude oil barrels were leaked as a result of the rupture of pipeline of the ExxonMobil oil into the Yellowstone River. The picture given below speaks 1000 words about the same and portrays the deleteriou s effects of oil spills on the animals and birds that have marine habitat. This bird complains about the effects of BP oil spill upon its health and life. The effect of BP’s Gulf oil spill (Crisis Boom, 2011b). The company took urgent measures to stop the oil spill. â€Å"Work continues to stop the oil remaining in the flowline from leaking. We estimate the current rate of leakage is less than five barrels a day† (Crisis Boom, 2011a). In an attempt to take precautionary measures and avoid similar situations from arising in the future, Shell Company’s spokesman said that the company is managing a leak identified in the flow line which goes into the platform of the Gannet Alpha. In order to identify the sub-sea leak after a light sheen was seen, the company made use of a vehicle that is operated with remote. The spokesman further said that the company has considerably stemmed the leak and its efforts are directed at isolating it further. To reduce the risk, the co mpany has shut the seub-sea well and has also depressurized the flow line (The Guardian, 2011). These were the emasures the Royal Dutch Shell Company primarily took to improve its image in the public eye as well as to save the environment from any damage in the future. The company openly narrated its efforts. This overt expression was basically meant for the public in general and the critics in particular so that they may realize that the company