Source: https://jncpe.com/courses/like-kind-exchanges-13-5-hrs/
Timestamp: 2019-04-23 18:57:06+00:00

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Format: Online pdf (313 pages). Printed book available.
1. 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.
2. 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.
3. 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.
2. Specify instances where the IRS may assert an unintended mandatory application of §1031.
1. Specify the elements §1031 and how these elements conceptually differentiate a like-kind exchange from a sale.
2. Identify excluded property types from qualified property types by determining the meaning the phrases “held for productive use in a trade or business,” “productive use,” and “investment purpose” specifying the impact of time and taxpayer intent.
3. Recognize the state of mind issues in the concept “held for productive use in trade or business or for investment” and how qualifying use can ease qualification, determine the differences between §1031 and old §1034, and cite the same taxpayer requirement and its unsettled caselaw.
4. Specify the former statutory exclusions from §1031 and the types of property that were specifically excepted.
5. 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.
1. Identify “boot” and like-kind property specifying boot’s potential impact on nonrecognition and list several examples of boot.
2. Determine taxable “boot,” specify the differences between realized gain and recognized gain recalling the limitation on recognition of gain under §1031 that prevents a taxpayer from being taxed greater than if he had sold the property, and recognize taxable “boot’s” net effect.
1. Determine mortgage boot and property boot identifying whether a taxpayer has given or received boot in an exchange and the related tax consequences.
2. Identify the popular and alternate offset rules used to determine net boot, specify techniques to limit net taxable boot such as adjusting mortgages before an exchange and treating closing costs according to R.R. 72-456, and recognize the taxability of gain rule to reflect netting.
After studying the materials in Chapter 5, answer the exam questions 32 to 36.
1. Identify the categories of property received in an exchange and which category is permitted to recognize loss, recognize how avoiding §1031 can allow clients to potentially increase recognizable losses, and determine the tax treatment of non-recognized losses under §1031.
1. Identify the general carryover basis rule to calculate a taxpayer’s basis in acquired property by determining its application and specifying the related allocation of basis to multiple properties and boot in an exchange.
After studying the materials in Chapter 7, answer the exam questions 39 to 41.
1. Identify property depreciation under §167 particularly as it applies to property used in a taxpayer’s trade or business or held for the produc-tion of income and the impact of ERTA, TRA ’86, OBRA ’93, and TCJA determine the changes made by Notice 2000-4, and cite the depreciation requirements of later regulations affecting recovery periods and depreciation methods.
2. Recognize the distinction between land and depreciable improvements, identify the recapture provisions and their impact on the rate to be applied to all or a portion of the gain that would otherwise be recognized.
After studying the materials in Chapter 8, answer the exam questions 42 to 46.
1. Specify the holding period of acquired property, identify the character of gain or loss recognized in an exchange, recall the evolution of the installment sale method and the current rules related to exchanges and determine the formula for gain recognized using gross profit, selling price and total contract price under §453.
b. Identifying how §§267, 707, 453 and 1239 work together with §1031.
3. Recognize how leveraging can be useful in a §1031 exchange, specify ways to cash out one or more partners out as part of an exchange by a partnership, and choose the proper tax forms to report an exchange.
After studying the materials in Chapter 9, answer the exam questions 47 to 52.
1. Recognize a simple test that permits clients and their advisors to determine if an exchange is completely tax-deferred and the components of this test, identify the basic computation figures necessary to economically balance an exchange, and specify methods of evening out to ensure that all parties get the same value as they give.
2. Determine how to balance multiple party exchanges using the in and out test determining net boot, select optimal exchange property to minimize taxable gain, and identify how to use refinancing, the “Coleman” solution, a wrap-around mortgage or a tax-free “cash out” to balance out an exchange.
After studying the materials in Chapter 10, answer the exam questions 53 to 58.
1. Identify the mechanics of a two-party and three-party exchange in-cluding related variations involving the cash out of a party.
2. Determine the transactional flow of a traditional three-party “Alderson” exchange including variations to the format, recognize the respective parties tax consequences and recall procedural guidelines to ensure mechanics comply with §1031 provisions.
3. Determine the elements of a three-party “Baird Publishing” ex-change and an “Alderson” exchange, specify variations of the “Baird Publishing” exchange and situations when each is the preferred format to use, identify categories of four-party exchanges, and specify when conditions favor the use a four-party “Coupe” exchange or a four-party “Mercantile Trust” exchange.
After studying the materials in Chapter 11, answer the exam questions 59 to 67.
1. Identify the distinctions between delayed exchanges and delayed closes particularly as to simultaneity, recall the evolution of delayed exchange requirements from the Starker case through the restrictive TRA ’84 time limits to the present and the popularity of delayed exchanges and specify unresolved issues for delayed exchanges.
d. Identifying whether a taxpayer is in actual or constructive receipt of money by recalling the safe harbors that can be used without risk of actual and constructive receipt.
After studying the materials in Chapter 12, answer the exam questions 68 to 75.
1. Identify the purpose a longtime exchange technique called “warehousing,” specify the procedural aspects of reverse exchanges under R.P. 2000-37 and variables impacting its application, recognize the “pot” method recalling the procedural role of “strawmen,” and determine the role of exchange escrows.
After studying the materials in Chapter 13, answer the exam questions 76 to 78.
1. Identify the differences between an accommodator and an intermediary, determine how using such parties can facilitate exchanging by avoiding certain holding problems, multiple parties and properties, and transfer difficulties, and recognize a sale and lease-back transaction and associated exchange complications.
After studying the materials in Chapter 14, answer the exam questions 79 to 80.

References: §1031
 §1031
 §1031
 §1034
 §1031
 §1031
 §1031
 §1031
 §167
 §453
 §1031
 §1031
 §1031