While tax reform visions have changed the tax on profits realized from the disposition of real estate, investors still seek escape hatches from the capital gain tax. Tax-deferred exchanges permit the disposition of property often with the taxpayer receiving significant cash but without the payment of any tax. Functionally, an exchange is a bridge over the normally taxable event of moving from one property to another. This course alerts the practitioner to the different planning opportunities that surround exchanging. Participants will be able to identify, analyze, and handle effectively the complex tax problems that arise under 1031. This understanding will be directly applied to the structuring and audit survival of multi-party and delayed exchanges.
Delivery Method: Online Interactive Self Study
Advanced Preparation: None
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Field of Study:
Passing Score: 70%
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Chapter 1: Introduction - Section 1031
1. Identify factors that determine the popularity of exchanging, specify tax law changes influencing exchange popularity noting the impact of current capital gains rates, recognize the capital gain rate "baskets" and determine the tax treatment of assets in each category.
2. Recognize the differences between exchanges and installment sales noting cost benefits, identify several advantages given to exchanging by recent legislation and specify continuing problems that can arise with an installment sale that can act as an impetus for using an exchange.
3. Specify multiple tax benefits of exchanges noting the advantages they create over installment sales and determine issues that can be re-solved or facilitated by using a like-kind exchange.
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CPA: Suitable for all CPAs
IRS: Enrolled Agents Program Number 263UK-T-00084-14-S