The Updated Nuts and Bolts of IRC Section 1031 Exchanges

Overview

In today’s real estate market, IRC §1031 tax-deferred exchanges can be one of the most important planning tools available to the real estate investor. The use of this technique is filled with pitfalls and traps. This new course will assist the practitioner in understanding the mechanics of a tax-deferred exchange and the value of a tax-deferred exchange in both tax and financial planning.

Updated August 2022

Prerequisites

None

Objectives

• To provide tax practitioners with an understanding of the mechanics of a tax-deferred exchange and the value of applying it in tax and financial planning  

Highlights

• Complete explanation of IRC §1031
• Understand when to use a tax-deferred exchange
• Changes made to the technique in the Tax Cuts and Jobs Act
• Advantages and disadvantages of paying the tax versus using an exchange
• Understand the definition of like-kind property
• Understand what a qualified intermediary is
• Understand the need for an exchange accommodation title holder
• Understand a reverse exchange
• Understand a build-to-suit exchange
• Understand the forty-five-day rule and how to calculate it
• Precautions for property identification
• Investment property versus property held for sale