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PROJECT DETAILS
Like-Kind Exchange for Personal Property
Our client relocated from Florida to Virginia and sold a former primary residence, believing the transaction could qualify as a like-kind exchange under IRC §1031 due to the purchase of a new home in another state.
Because §1031 applies only to investment real estate and not personal residences, the transaction required a detailed multi-state compliance review to prevent an invalid exchange and unexpected tax exposure.
We:
Reviewed the use and holding purpose of the Florida property
Confirmed §1031 ineligibility due to personal-use classification
Analyzed capital gain treatment and the §121 primary residence exclusion
Coordinated Florida and Virginia state tax considerations
Modeled federal and state tax outcomes
Ensured accurate reporting and full IRS compliance
Outcome:
The client avoided a disallowed exchange, applied the correct primary residence exclusion, and filed a fully compliant, penalty-free return across two states. The client also received clear guidance on §1031 limitations and planning considerations for future investment property transactions.
We confirmed ineligibility under current law, identified taxable gain exposure, and implemented alternative strategies such as §179 expensing, bonus depreciation, and timing planning.
Outcome:
A fully compliant return, reduced tax impact through proper expense treatment, and clear guidance for future asset replacements.
PROJECT DETAILS
Multi-State Tax Planning (Military Relocation: Hawaii → Virginia)
Our client is a military family that relocated from Hawaii to Virginia and required guidance on how the move affected state residency, filing obligations, and overall tax liability.
Military relocations present unique tax challenges, including service member residency rules, spouse residency considerations, state income sourcing, and part-year filing requirements.
We:
Determined state residency status under military tax protections
Reviewed Hawaii and Virginia filing requirements
Analyzed income sourcing for wages and other income
Ensured proper application of military-specific state tax rules
Coordinated accurate multi-state return preparation
Adjusted withholding and estimated payments as needed
Outcome:
The client filed fully compliant, penalty-free multi-state returns, avoided double taxation, and received clear guidance for future duty-station relocations.
PROJECT DETAILS
Quarterly Estimated Tax Strategy — Seasonal, Self-Employed Business
Our client is self-employed with a seasonal business, resulting in uneven income throughout the year and inconsistent tax withholding.
Seasonal income patterns often create challenges with quarterly estimated tax payments, increasing the risk of underpayment penalties and cash-flow strain.
We:
Reviewed seasonal revenue cycles and expense timing
Calculated accurate quarterly estimated tax payments
Applied safe harbor rules to reduce penalty exposure
Structured payments to align with peak and low-income periods
Coordinated federal and state estimated payments
Provided guidance for year-round monitoring and adjustments
Outcome:
The client avoided underpayment penalties, improved cash-flow predictability, and gained a practical, repeatable system for managing quarterly tax obligations despite seasonal income fluctuations.