Section 1031 Real Property Like-Kind Exchanges (RE)

Overview

With the increased interest in single family homes as investments, more professionals are finding themselves involved in Section 1031 transactions. Section 1031 of the Internal Revenue Code provides a tax-deferral mechanism that allows investors to accumulate wealth from certain types of real property exchanges. By precisely following the Section 1031 rules, a taxpayer can dispose of an appreciated asset and purchase a new one with the proceeds without owing immediate capital gains tax. This advanced course provides an explanation of who, what, where, when, and how such a tax-deferred exchange is accomplished. 

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Learning Objectives

  • Define basic tax concepts such as basis, capital gain, realized gain, recognized gain, and boot
  • Explain the benefits of a tax-deferral under Section 1031
  • Demonstrate an understanding of the terminology in Section 1031 such as exchanger, original (relinquished) property, replacement property, and qualified intermediary
  • Recognize examples of the types of property eligible for 1031 exchanges
  • Illustrate what is meant by like-kind property
  • Describe the types of 1031 exchanges such as simultaneous exchanges, deferred (forward, delayed) exchanges, and reverse exchanges
  • Summarize the strict IRS timing deadlines
  • Recognize related party transaction issues
  • Explain IRS reporting requirements for 1031 exchanges 


Designed For:

Real estate professionals at any stage of their career who want exposure to this advanced topic 




Course Information

Adding additional credit may change exam requirements.