This course offers an in-depth exploration of the tax implications of real estate dispositions, a critical area for investors and tax practitioners in the context of frequent tax reforms. Participants will gain a thorough understanding of capital gains rates and the application of the "basket" approach to various assets. The course provides insights into calculating gains under the installment method, including the application of unstated interest rules. A significant focus is given to like-kind exchanges, including the identification and mechanics of delayed exchanges. Attendees will also learn to differentiate between recourse and nonrecourse indebtedness and their effects on foreclosures, as well as the repossession rules under Section 1038. The course further examines involuntary conversions, easements, condemnation awards, and the at-risk limits, offering participants a comprehensive view of real estate tax issues. This training is ideal for professionals seeking to deepen their understanding of real estate taxation and to provide informed guidance to clients navigating these complex issues.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Chapter 1
Identify capital gains rates with applicable assets using the "basket" approach
Chapter 2
Determine gain under the installment method noting the application of the unstated interest rules
Chapter 3
Specify the types of property that qualify for a like-kind exchange
Recognize the methods of identifying such property in a delayed exchange including the mechanics for such an exchange.
Chapter 4
Recognize the differences between recourse and nonrecourse indebtedness identifying their impact on foreclosures
Determine how various types of property affect the repossession rules of Section 1038 including basis and gain or loss for both installment and non-installment method sales.
Chapter 5
Determine how easements affect condemnations and how to report gain or loss associated with involuntary conversions
Cite the types of payments included in a condemnation award.
Chapter 6
Specify the types of entities that qualify for exclusion from at-risk limits noting the impact of recourse and nonrecourse financing.
Major Topics
Capital Gains
Home Sales
Foreclosure & Repossession
Involuntary Conversions
At-Risk Limits
