Section 1031 Exchanges: Qualification and Tax Reporting
Author: James R. Hamill
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 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
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 course 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 course will also discuss computations of realized and recognized gains, and basis of replacement property.
Publication Date: February 2025
Designed For
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
- Statutory requirements of like-kind exchanges
- Required purpose for holding exchanged properties
- Time periods for deferred exchanges
- Mechanics of identification of replacement property
- Uses of qualified intermediaries
- Uses of qualified escrows
- Reporting requirements for exchanges
Learning Objectives
- Recognize and apply the requirements to support a tax-deferred exchange
- Identify key issues that must be reviewed for qualification
- Identify the documentation to maintain and the reporting obligations of an exchange
- Identify how long title parking can be utilized under the Section 1031 safe harbor rules
- Identify within how many days the replacement property must be received for Form 8824 reporting
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
