This course provides a technical overview of IRC 1031 like-kind exchanges, focusing on the application of current law and regulations following the Tax Cuts and Jobs Act. Presented by a former IRS subject matter expert, the course is designed for practitioners who advise on, prepare, or review transactions involving real property exchanges. Participants will examine qualification requirements, definitions of real property, and the determination of like-kind versus non-like-kind property under Treasury Regulations. The course covers key concepts including relinquished and replacement property, boot, realized and recognized gain, and basis calculations. Additional topics include the interaction of 1031 with cost segregation studies, depreciation treatment under 1245 and 1250, replacement property basis allocation, depreciation of carryover and excess basis, and multi-property exchange rules. Practical compliance considerations relevant to tax return preparation and review are emphasized throughout. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.
Learning Objectives
After attending this presentation, you will be able to...
- Identify the basic principles and terminology associated with IRC § 1031.
- Identify the multiple-property exchange rules under IRC § 1031.
- Recognize the information to request from clients when preparing an IRC § 1031 calculation or responding to an IRS examination of an exchange.
Major Topics
The major topics that will be covered in this course include:
- IRC § 1031 like-kind exchange rules under current law
- Changes to § 1031 following the Tax Cuts and Jobs Act
- Qualification requirements for like-kind exchanges
- Definition of real property under Treasury Regulations
- Like-kind versus non-like-kind property
- Relinquished property
- Replacement property
- Realized gain
- Recognized gain
- Basis calculations
- Interaction of § 1031 exchanges with cost segregation studies
- Depreciation treatment under IRC §§ 1245 and 1250
- Allocation of basis to replacement property
- Depreciation of carryover basis
- Depreciation of excess basis
- Multiple-property exchange rules
- Tax return preparation and review considerations
- Compliance considerations for § 1031 exchanges
