1031 Exchanges
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Course Content
Course Description
This 1-credit course covers the practical rules of §1031 like-kind exchanges for real property. You will learn how to evaluate eligibility (investment/business property vs. property held for sale), how to avoid common “blow-up” mistakes, and how to keep the transaction compliant from sale to acquisition.
The course emphasizes the strict timing rules: 45-day identification and 180-day completion. You will also work through boot concepts (cash boot and mortgage/debt boot), reinvestment expectations, and why most exchanges require a properly structured qualified intermediary (QI) arrangement to avoid actual or constructive receipt.
Topics Covered: Eligibility rules; property held for sale exception; 45/180 deadlines; identification basics; QI and constructive receipt; boot (cash and debt); reinvestment and value/debt comparisons; basis carryover; Form 8824 overview.
Learning Objectives
- Determine whether the relinquished and replacement properties qualify for §1031 treatment.
- Apply the 45-day identification and 180-day completion rules using real timelines.
- Identify common boot situations (cash boot and mortgage/debt boot) and the tax impact.
- Explain why QIs are used and how to avoid actual/constructive receipt of proceeds.
- Describe how basis carries over in a deferred-gain exchange and what Form 8824 reports.
- Spot common errors that cause exchanges to fail and turn into taxable sales.
About The Presenter:
Larry Johnson, CPA
Larry, former tax manager in a “Top 100” CPA firm, currently provides professional services for a non-profit organization. His extensive experience includes tax preparation, tax planning, IRS representation, and estate planning for clients who range from the modest to the very wealthy and who have been involved in all sorts of businesses including manufacturing, farming, and services. Larry, who holds a Master of Science in Taxation, speaks regularly about taxes to a variety of audiences. His relaxed, “let’s talk about it” approach is perfect for presenting the tax topics and updates we cover at our Basics & Beyond, Inc. income tax seminars.
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