Section 1031 Exchanges: Qualification and Tax Reporting (Completed)

Date: Friday, January 21, 2022
Instructor: James R. Hamill
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

Section 1031 provides an opportunity to defer gains realized from the sale of real property by investing in qualifying replacement property. Exchanges are subject to specific reporting and computational requirements.

It is unusual for an exchange to be between two parties. For this reason the regulations allow a facilitator, called a “qualified intermediary” to be part of an exchange. QI-facilitated exchanges typically involve four parties and must be carried out pursuant to requirements spelled out in the statute and the regulations.

In this two-hour CPE webinar with nationally recognized tax expert and instructor James Hamill, CPA, Ph.D. will explain why and how to complete a like-kind exchange. This will include a discussion of multi-party deferred exchange structures and less common “parking” arrangements. You will learn the mechanics and the reporting obligations of a QI-facilitated exchange to assist clients in satisfying the complex regulations. The session will also discuss computations of realized and recognized gains, and basis of replacement property.

Who Should Attend
CPAs, EAs, tax preparers and other tax professionals with responsibility for preparation of a variety of tax return types that may include like-kind exchange qualification and reporting.

Topics Covered

  • Benefits of like-kind exchanges
  • Detriments of like-kind exchanges
  • Effect of debt on relinquished and replacement properties
  • Receipt of "boot" and how to measure recognized gain
  • Determining basis in replacement property
  • Requirements for identification and receipt of replacement property
  • Special tax issues that may need to be addressed

Learning Objectives

  • Recognize and apply the requirements to support a tax-deferred exchange
  • Identify key issues that must be reviewed for qualification
  • Determine the documentation to maintain and the reporting obligations of an exchange

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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