- Credits: 13
- Format: Self-Study eBook
- Field of Study: Federal Tax Update
- Author/Speaker: Danny Santucci, CPA
|Course ID:||Advanced Preparation:||Experience Level:|
|EWTFM-U-01674-20-S | 6233-CE-0350||None||Overview|
|Published Date:||Program Prerequisites:||Other Course Formats:|
|© February 2021||General Understanding of Taxes||Self-Study eBook|
While tax reform visions have changed the tax on profits realized from the disposition of the real estate, investors still seek escape hatches from the capital gain tax. Tax-deferred exchanges permit the disposition of property often with the taxpayer receiving significant cash but without the payment of any tax. Functionally, an exchange is a bridge over the normally taxable event of moving from one property to another.
This course alerts the practitioner to the different planning opportunities that surround exchanging. Participants will be able to identify, analyze, and handle effectively the complex tax problems that arise under Section 1031. This understanding will be directly applied to the structuring and audit survival of multiparty and delayed exchanges.
After reading the course material, you will be able to:
- Identify factors that determine the popularity of exchanging, specify tax law changes influencing exchange popularity and the impact of current capital gains rates, recognize the capital gain rate "baskets" and determine the tax treatment of assets in each category.
- Recognize the differences between exchanges and installment sales and the cost benefits of each, identify several advantages given to exchanging by recent legislation and specify continuing problems that can arise with an installment sale that can act as an impetus for using an exchange.
- Specify multiple tax benefits of exchanges and the advantages they create over installment sales and determine issues that can be resolved or facilitated by using a like-kind exchange.
- Specify instances where the IRS may assert an unintended mandatory application of Section 1031.
- Specify the former statutory exclusions from Section 1031 and the types of property that were specifically excepted.
- Identify the like-kind requirement as it impacts real estate and personal property, and recognize the former classification systems that permitted clients to exchange like-kind or like-class personal property.
- Identify the categories of property received in an exchange and which category is permitted to recognize loss, recognize how avoiding Section 1031 can allow clients to potentially increase recognizable losses, and determine the tax treatment of non-recognized losses under Section 1031.
Who Should Attend:
- All Certified Public Accountants (CPAs)
- Enrolled Agents (EAs)
- Tax Return Preparers (TRPs)