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Self-Study Courses

Like Kind Exchanges (Currently Unavailable)

2 CPE Credits $31.00/credit hour
★ ★ ★ ★ ☆ 4.8 (9 ratings)
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 to receive credits

Join Allison McLeod, CPA, LL.M for a discussion on like-kind exchanges (LKE), known as one of the last great tax legal “shelters” available to those buying and selling real property. We will be covering the basic structure of a LKE, and ways a taxpayer can utilize qualified third party intermediaries (QI), tenancy-in-common structures including Delaware Statutory Trusts (DST). We will also explore creative solutions to sticky situations a taxpayer may find itself in obtaining replacement property. This course is ideal for CPAs, EAs, lawyers, real estate professionals, accountants or other tax professionals.

Publication Date: June 2021

Topics Covered

  • General Rule: Sale or Exchange
  • Some Exceptions to Gain Recognition
  • IRC Sec. 1031(a)(1)
  • Examples of Like”Kind Property
  • Property That Is Not Like”Kind
  • Advantages of a LKE
  • Disadvantages of LKEs
  • Parties to the Exchange
  • Glossary of Terms
  • Types of Like Kind Exchanges
  • Direct Exchange Example
  • Direct Like”Kind Exchange
  • Basic Three Party Exchange
  • During the Exchange
  • Receipt of Boot During Trade Down
  • Three Party Exchange with Boot and Trade Down
  • Basis of Like”Kind Property Received
  • Requirements for a Deferred (Non”simultaneous Exchange)
  • Requirements for Identification of RP
  • New Construction as Replacement Property
  • Forward and Reverse Deferred Exchanges
  • Requirements for the EAT
  • Forward Exchange — RQ Parked
  • Reverse Exchange ” New Construction as RP
  • Forward and reverse combo exchange
  • Delaware Statutory Trusts ("DSTs)
  • Features of a DST
  • Stories from the trenches
  • Related Party Issues
  • Exchanges Between Related Parties
  • Other Issues
  • Vacation Homes as LKE

Learning Objectives

  • Differentiate whether a LKE can be used to defer taxes upon the sale of real property
  • Recognize when it is appropriate to use a QI in effecting a LKE
  • Describe a DST and how it can be used in obtaining replacement property on a timely basis
  • Identify ways to appropriately use the LKE structure in unusual situations
  • Describe a gain or loss that must be recognized when there is a sale or exchange of property
  • Differentiate IRC Sections and how they apply
  • Recognize correct statements with respect to like-kind exchanges
  • Describe which property may qualify for like-kind exchange treatment
  • Identify a requirement related to identification of replacement property
  • Recognize correct statements with respect to vacation homes as a like-kind exchange
  • Describe examples of qualifying like-kind property
  • Identify advantages and disadvantages of a like-kind exchange
  • Identify the taxpayer's cost of relinquished property plus capital improvements minus depreciation
  • Identify requirements in a deferred/non-simultaneous exchange
  • Describe the maximum number of replacement properties that can be identified
  • Describe a Delaware Statutory Trust

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

Instructor

Allison McLeod

Professor McLeod, LL.M., JD, CPA, is currently a full-time Senior Lecturer at the University of North Texas, where she has taught classes in Corporate Income Taxes, Multi-jurisdictional Taxes, Individual Taxes, Tax Research, Ethics and Financial Accounting. She has taught as an adjunct professor at the University of North Texas College of Law.

Prior to Professor McLeod going into academia, she worked for 18 years in industry and in a Big Four accounting firm. Professor McLeod earned a law degree from Baylor School of Law, and an LL.M. degree in Taxation from Southern Methodist School of Law. She has been a licensed CPA since 1993 and has been licensed to practice law since 1992. Professor McLeod has enjoyed teaching live ethics course to CPAs since 2011 and is the owner of  www.cpaethicsonline.com, which offers on-line self-study courses to CPAs. She currently serves on the Professional Ethics Committee of the Texas Society of CPAs.which offers on-line self-study courses to CPAs. She served on the Professional Ethics Committee of the Texas Society of CPAs and the AICPA CPA Exam Committee (REG).
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