Like-Kind Exchanges

Author: Allison McLeod

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

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.

Publication Date: July 2024

Designed For
CPAs, EAs, lawyers, real estate professionals, accountants or other tax professionals.

Topics Covered

• General Rule: Sale or Exchange
• Some Exceptions to Gain Recognition
• IRC Sec. 1031(a)(1)
• Property That Is Not Like-Kind
• Advantage of a LKE
• Disadvantages of LKEs
• Parties to the Exchange
• Glossary of Terms
• Types of Like Kind Exchanges
• Requirements for Identification of RP
• Requirements for the EAT
• Forward and Revers Combo Exchange
• Delaware Statutory Trusts ("DSTs")
• Other Issues
• Recent Updates

Learning Objectives

• Recognize how to 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
• Identify the IRC section that defines gain or loss realized as the amount received (sales proceeds) over the adjusted basis (cost less any depreciation taken) of the property

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None