Section 1031 Real Property Like-Kind Exchanges

Overview

Section 1031 provides real property investors with a powerful mechanism to accumulate wealth by deferring tax. By following the Section 1031 rules to a T, a taxpayer can dispose of an appreciated asset without owing immediate capital gains tax. The taxpayer rolls the entire proceeds - including the gain - into like-kind real property according to the steps and requirements laid out in 1031. Eventually, the tax comes due, but in the meantime, often a very long time, the investor has been able to put all of the money to work rather than merely the amounts left after a tax bite or two.

This intermediate level course provides an explanation of who, what, where, when, and how such a tax-deferred exchange is accomplished. Transactions can thereby be structured to fit within the 1031 parameters for real property like-kind exchanges.

Learning Objectives

After completing this course, you will be able to identify, recall, and recognize proper application of rules related to Section 1031 Like-Kind Exchanges, specifically related to:

  • the benefits of a tax deferral under Section 1031
  • Section 1031 terminology
  • the types of property eligible for 1031 exchanges
  • the types of 1031 exchanges
  • the process and requirements to achieve full or partial tax-deferral

Tax Year: 2020

Designed For

CPAs; Enrolled Agents; California, Maryland, Oregon, and other state tax preparers; real estate investors; real estate advisors; and financial advisors

Prerequisites

The student should be familiar with such basic federal tax concepts and rules related to capital gains and losses, realized versus recognized gain, basis, and boot. Experience in designing real estate purchase and sale transactions is a plus, as is experience in completing tax returns with issues requiring Form 1040 Schedule D. General awareness of Form 8949 is helpful.

WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
Find Courses Now