Real estate attorneys, lenders, accountants, investors, brokers and related professionals face a real estate industry with ever-increasing complexity. To survive and succeed in today's real estate market, once must possess the knowledge, skill and creativity essential in hurdling the attendant legal and tax-related obstacles.
The real estate market is greatly influenced by the tax considerations of a given transaction: §1031 tax-deferred exchanges. Otherwise known as 'like-kind' exchanges, this transaction offers real estate investors an effective vehicle to defer the recognition of gain upon the transfer of real estate assets. This program will examine the effective use of §1031 exchanges in coordination with tenant in common (TIC), helping attendees learn how to maximize their investment by minimizing tax consequences. An overview and definition of TIC will be discussed, and sample transactions will illustrate the practical utilization of this type of transaction.
8:30 a.m. - 12:00 p.m. (Break 10:00 a.m. - 10:10 a.m.)
I. Rules And Requirements
A. What Is A §1031 Tax Deferred Exchange?
B. The IRS Definition Of 'Like Kind'
C. What Is A Qualified Property?
D. Exceptions To 'Like Kind'
E. Examples Of Exchanges
F. Delayed Exchanges Using A 'Qualified Intermediary'
G. Identification Rules
II. Investor Benefits
A. IRS Revenue Procedure (rev proc) 2002-22
B. Illustrations Of Hypothetical Sales Transactions
1. Simple Sales Transaction
2. Tax On The Sale
3. §1031 Exchange Alternative
4. Tenant In Common (TIC) §1031 Tax Deferred Exchange
C. §1031 Replacement Property Challenges
D. The New §1031 Exchange Alternative: TIC
E. Benefits Of A TIC
12:00 p.m. - 1:00 p.m.
Lunch (On Your Own)
1:00 p.m. - 4:30 p.m. (Break 2:30 p.m. - 2:40 p.m.)
III. Market Projections
A. Real Estate vs. Wall Street
B. Management Free Real Estate Investment Alternatives
C. TIC Dollars: History/2003 Projection
IV. Example Properties
B. Industrial Offering
C. Retail Offering
D. A Full-Cycle TIC Investment
V. Panel Discussion, Questions And Answers