Real estate attorneys, 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, one 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 offer real estate investors an effective vehicle to defer the recognition of gain upon the transfer of real estate assets. Accordingly, a working understanding of 'Exchange' techniques, laws, rules and regulations is an essential attribute for real estate professionals.
This program is designed to take professionals to a higher level of knowledge and practical skill as concerns exchanging under IRC §1031. Real estate professionals will benefit from our faculty's comprehensive discussions of:
- Overview of exchanges
- Essential requirements for all Section 1031 exchanges
- Realized gain, recognized gain, boot, liabilities and basis
- Deferred (non-simultaneous) exchanges
- Mechanics/documentation of Section 1031 exchanges
- Special issues, including reverse exchanges and tenant-in-common interests
8:30 a.m. - 8:45 a.m.
I. Overview Of Exchanges
A. Code Section 1031
B. Why Exchange Under Code Section 1031?
8:45 a.m. - 9:35 a.m.
II. Essential Requirements For All Code Section 1031 Exchanges
A. Meaning Of 'Exchange'
B. The Holding Purpose Requirement Property Held For Use In Trade Or Business Or For Investment
C. Properties Exchanged Must Be 'Like-Kind'
D. Property Ineligible For Like-Kind Exchange Treatment
9:35 a.m. - 10:30 a.m.
III. Realized Gain, Recognized Gain, Boot, Liabilities And Basis
A. General Summary Of Tax Consequences
B. Determining The Amount Of Realized Gain
C. Recognized Gain
D. Determining Basis Of Property Received In An Exchange
10:30 a.m. - 10:40 a.m.
10:40 a.m. - 12:15 p.m.
IV. Deferred (Non-Simultaneous) Exchanges
A. Statute And Regulations Overview
B. Identification And Receipt Requirements Strict Time Requirements
C. Safe Harbors Methods To Secure The Transfer Of Like-Kind Property And Avoid Actual Or Constructive Receipt Of Boot
D. Restrictions On Taxpayer's Ability To Draw Funds
E. Disqualified Person Rule
12:15 p.m. - 1:15 p.m.
Lunch (On Your Own)
1:15 p.m. - 2:20 p.m.
V. Mechanics/Documentation Of Section 1031 Exchanges
A. Converting A Sale Of The Relinquished Property Into A Section 1031 Exchange
B. Documenting The Exchange
C. Identification Of Replacement Property
D. Acquiring The Replacement Property
E. Closing Statements
F. Reporting And Income Tax Withholding Requirements
2:20 p.m. - 2:30 p.m.
2:30 p.m. - 4:30 p.m.
VI. Special Issues
A. Reverse Exchanges
B. Related Party Exchanges
C. Distressed Property
D. Replacement Property To Be Built
E. Exchanges Of Personal Property
F. Dealers Of Real Estate
G. Partnerships And Co-Ownership Of Property
H. Single Member Limited Liability Companies
I. Installment Sales And Section 1031 Exchanges
J. Multiple Asset Exchanges
K. Working With Securitized Loans