Whenever a business or investment property is sold for a gain, the seller generally has to pay tax on the gain at the time of sale.

IRC Section 1031 (26 U.S.C. § 1031) provides an exception allowing the seller to postpone paying tax on the gain if the proceeds are reinvested in similar property as part of a qualifying "like-kind" exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred but not tax-free.

This 3-hour course covers several topics and issues relating to 1031 Exchanges, such as:

• Critical IRS time deadlines in delayed exchanges
• Reverse and improvement exchanges
• Like-kind requirements, including creative property variations, e.g., easements
• Transferable development rights
• Oil, gas and mineral rights
• Vacation homes held for investment
• Partnership and LLC scenarios (and how to best structure in advance of a 1031 exchange)
• Fractional ownership structures, e.g., DSTs and TICs
• Related party transactions
• How to avoid common pitfalls
• Applicable Revenue Rulings, Private Letter Rulings (PLRs) and recent IRS Guidance

You'll also learn how to help taxpayers who own commercial property as part of an LLC or partnership avoid issues at closing in situations wherein only some of the members or partners want to exchange. Some of the methods covered are the "drop and swap," "swap and drop," and Partnership Installment Note (PIN) approaches.

By the end of class, you'll understand what a 1031 Exchange is and know all the ins and outs of the process!

Class Details & Registration

Instructors: Deborah Harvego & Scott Saunders
CE Credit: 3 Hours
Cost: Free for Members | $30 for Non-Members

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