Source: https://webcpe.net/CPE-courses/92306/tax-cpe-92306.php?UserID=
Timestamp: 2019-04-25 10:53:39+00:00

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Course Description: While tax reform visions have changed the tax on profits realized from the dispo-sition of real estate, investors still seek escape hatches from the capital gain tax. Tax-deferred exchanges permit the disposition of property often with the taxpay-er 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 proper-ty to another. This course alerts the practitioner to the different planning oppor-tunities that surround exchanging. Participants will be able to identify, analyze, and handle effectively the complex tax problems that arise under 1031. This un-derstanding will be directly applied to the structuring and audit survival of multi-party and delayed exchanges.
Determine the conceptual changes made to §1031 by the TRA ’84, TRA ’86, the Revenue Act of 1987, and the RRA ’90 and specify the current provisions of §1031.
Specify instances where the IRS may assert an unintended mandatory application of §1031.
Specify the elements §1031 noting how these elements conceptually differentiate a like-kind exchange from a sale.
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” noting the impact of time and taxpayer intent.
Recognize the state of mind issues in the concept “held for productive use in trade or business or for investment” noting how qualifying use can ease qualification, determine the differences between §1031 and old §1034, and cite the same taxpayer requirement noting the unsettled caselaw.
Specify the statutory exclusions from §1031 noting the types of property that are specifically excepted.
Identify “boot” and like-kind property noting boot's potential impact on nonrecognition and list several examples of boot.
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.
Identify the categories of property received in an exchange into noting 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.
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 ex-change.
Identify property depreciation under §167 particularly as it applies to property used in a taxpayer’s trade or business or held for the pro-duction of income noting the impact of ERTA, TRA ’86 and OBRA ’93, determine the changes made by Notice 2000-4, and cite the depre-ciation requirements of later regulations affecting recovery periods and depreciation methods.
Specify the holding period of acquired property, identify the character of gain or loss recognized in an exchange, and recall the evolution of the installment sale method noting current rules related to exchanges and determine the formula for gain recognized using gross profit, selling price and total contract price under §453.
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.
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 “Cole-man” solution, a wrap-around mortgage or a tax-free “cash out” to balance out an exchange.
Determine the transactional flow of a traditional three-party “Alder-son” exchange including variations to the format, recognize the respec-tive parties tax consequences and recall procedural guidelines to en-sure mechanics comply with §1031 provisions.
Determine the elements of a three-party “Baird Publishing” exchange and an “Alderson” exchange, specify variations of the “Baird Publishing” exchange noting situations when each is the preferable 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.
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 noting the popularity of delayed exchanges and specify unresolved issues for delayed exchanges.
Identify the purpose a longtime exchange technique called “ware-housing,” specify the procedural aspects of reverse exchanges under R.P. 2000-37 noting variables impacting its application, recognize the “pot” method recalling the procedural role of “strawmen,” and deter-mine the role of exchange escrows.

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