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| Author : | Danny C Santucci, JD |
| Status : | Production |
| CPE Credits : | 16.0 |
| IRS Credits : | 16 |
| Price : | $127.95 |
| Passing Score : | 70% |
| Primary Subject-Field Of Study: | Taxes - Taxation for Course Id 231 |
| Description : | While tax reform visions have changed the tax on profits realized from the disposition of real estate, investors still seek escape hatches from the capital gain tax. Tax-deferred exchanges permit the disposition of property often with the taxpayer 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 property to another. This course alerts the practitioner to the different planning opportunities that surround exchanging. Participants will be able to identify, analyze, and handle effectively the complex tax problems that arise under 1031. This understanding will be directly applied to the structuring and audit survival of multi-party and delayed exchanges. |
| Usage Rank : | 0 |
| Release : | 2017 |
| Version : | 1.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
CONCEPTS MECHANICS OF EXCHANGES Accountants
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| Advance Preparation : | None. |
| Delivery Method : | Self-Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 30-Sep-2017 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - NASBA Registry - IRS Enrolled Agents - 231 |
| Keywords : | Taxes, Concepts, Mechanics, Exchanges, cpe, cpa, online course |
| Learning Objectives : |
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| Course Contents : | Chapter 1 - Introduction - §1031 Taxes & Exchange Popularity ERTA & TEFRA Tax Reform Act of 1986 Reform Act of 1997, Budget Act of 1998, & 2003 Bush Tax Act Impact & Summary Exchanging vs. Installment Sales Tax Reform Act of 1986 Revenue Act of 1987 Continuing Problems Disposition of Installment Note Stepped-up Basis on Death Related Parties Security Issues Exchange Benefits Chapter 2 - Section 1031 & its Function Section 1031 as an Exception to General Rule of Taxation Concept of Tax Deferral History of Provision Rationale Continuity of Investment Administrative Convenience IRS Position Mandatory Application Chapter 3 - Statutory Requirements and Definitions Qualified Transaction - Exchanges v. Sales Definition of an Exchange Contractual Interdependence Test Integrated Plan Test Caselaw Intent of the Parties Held for Productive Use or investment Definition Productive Use Retired Property Investment Purpose Use by Relatives Vacation Homes Moore Decision R.P. 2008-16 Change in Property’s Character Conversion of Personal Use Property Time Pre-Existing Plans & Contracts Acquisition Purpose State of Mind Concept Focused Analysis - Taxpayer-By-Taxpayer Application Combining Qualifying Use Section 1034 Confusion Same Taxpayer Requirement Caselaw & Ruling Developments Magneson Bolker LTR 199911033 Statutory Exclusions from §1031 Stock In Trade or Other Property Held Primarily For Sale Property Held Primarily for Sale Question of Intent Dealer Issue Stocks, Bonds or Notes Other Securities or Evidences of Indebtedness or Interest Interests in a Partnership Existing Partnerships 1991 Final Regulations Certificates of Trust or Beneficiary Interests Choses in Action Impact Like Kind Property Nature or Quality of Property Personal & Multiple Property Regulations Effective Date General Rule for Netting Liabilities Abandonment of Anticipatory (Re)Financing Proposal Like-Kind Requirement for Personal Property Like-Kind Like Class Five vs. Four Digits Miscellaneous Category SIC Replaced by NAICS System Property Held for Investment Class Priority Other Personal Property Goodwill Prohibition Multiple Asset Exchanges Definition Exchange Groups Aggregation & Allocation Residual Group Liabilities Real v. Personal Property State Law Non-property Land vs. Improvements General Rules Examples Chapter 4 - The Concept of “Boot” Partial Tax-Deferral Examples of Boot Realized and Recognized Gain Realized Gain Recognized Gain Limitation on Recognition of Gain under §1031 The Definition of “Boot” Chapter 5 - The Rules of “Boot” Property Boot and Mortgage Boot Property Boot Mortgage Boot Debt Relief Debt Relief Is the Equivalent of Cash Liability or Notes Created During the Exchange Netting “Boot” - The Rules of Offset Property Boot Given Offsets Any Boot Received Mortgage Boot Given Offsets Mortgage Boot Received Adjustments to Mortgages during Exchange LTR 9853028 Mortgage Boot Given Does Not Offset Property Boot Received Biggs Case Behrens Case R. R. 72-456 & Commissions Non-Deductible Closing Costs Permissible Trade Down Affect on Basis Net Taxability of Gain Comment on Alternative Offset Rules Chapter 6 - Losses in an Exchange Like-Kind Property Non Like-Kind Property Given Chapter 7 - Basis on Tax-Deferred Exchange Adjustments to Basis Allocation of Basis Anti-Churning Rules Under ERTA Under TRA ‘86 Effect Property Placed in Service Prior to 1981 Property Placed in Service from 1981 Through 1986 Chapter 8 - Depreciation, Cost Recovery, Macrs and Recapture ERTA TRA ‘86 & OBRA ‘93 IRS Depreciation Guidance - Notice 2000-4 & Regs Regulations Land vs. Improvements New Allocation on Exchange Recapture of Depreciation Section 1245 Section 1250 Recapture Property Exchange Impact Recapture Exceptions Prior To ERTA §1250(d) Exception §1245 (b) Exception Issues after ERTA TRA ‘86 Allocation of Basis When Recapture Applies Investment Credit Recapture Chapter 9 - Miscellaneous Exchange Aspects Holding Period Strict View Treatment of Gain or Loss Installment Sales Reporting Treatment Prior to 1980 Treatment After 1980 Formula Definitions Exchanges between Related Parties Two-Year Limitation Related Parties Special Holding Period Rule Disposition Avoidance Exception to §1031 Sections 267, 707, 453, & 1239 Leverage Splitting Partners Reporting an Exchange Schedule D & Form 4797 Form 8824 Accommodators Chapter 10 - Exchange Mechanics Analysis Meeting the Napkin Test Components Figures for Computation Economic Balance & “Evening Out” Balancing Multiple Party Exchanges Examples of Balancing Multiple Party Exchanges Locating Boot Finding Exchange Property Trade Up Rule Exchange Groups Refinancing “Coleman” Solution Wrap-Around Mortgage Tax Free “Cash Out” Chapter 11 - Types of Exchanges Two-Party Exchanges Variation #1 On Two-party Exchanges Three-Property-Plus Exchanges Variation on Three-Property Exchange Three-Party “Alderson” Exchange Variation #1 on Three-Party “Alderson” Exchange Variation #2 on a Three-Party “Alderson” Exchange Variation #3 on Three-Party “Alderson” Exchange Variation #4 on Three-Party “Alderson” Exchange Three-Party “Baird Publishing” Exchange Variation #1 on Three-Party “Baird Publishing” Exchange Variation #2 on Three-Party “Baird Publishing” Exchange Four-Party Exchanges Four-Party “Coupe” Exchange Four-Party “Mercantile Trust” Exchange Chapter 12 - Delayed Exchanges Delayed Exchange vs. Delayed Close Chaos Factor Perspective Old Main Stream Formats Rising New Star - Delayed Exchange Care in Execution Starker Case Facts Starker II Holding Analysis TRA ‘84 45-Day Rule Method of Identification 180-Day Rule Pre-existing Exchanges Holdover Issues after Tax Reform Format & Structure “Starker” Trust Intermediary Format Acceptance of Notes on Exchangor’s Property Security for Performance - Use and Control of Cash Performance Deed of Trust Third Party Guarantee or Letter of Credit Impound Interest Encumbered Property and Immediate Mortgage Relief Open Transaction Theory “Sale-in-Lieu” Provision Delayed (Deferred) Exchange Regulations Final Regulations Effective Date Deferred (Delayed) Exchange Definition “Reverse-Starker” Transactions Identification Requirements Identification & Exchange Periods Application of §7503 Method of Identification Property Description Incidental Property - 15% Rule Revocation Substantial Receipt Multiple Replacement Properties Actual & Constructive Receipt Rule Four Safe Harbors Safe Harbor #1 - Security Safe Harbor #2 - Escrow Accounts & Trusts Disqualified Person Who Is An Agent? Safe Harbor #3 - Qualified Intermediary Who Is A Qualified Intermediary? Direct Deeding Assignment Simultaneous Exchanges Safe Harbor #4 - Interest Interest Reporting - §468B(g) Restrictions On Rights to Money & Other Property - “g(6)” Limitations Outside Transfers of Money or Other Property Delayed Exchange Agreement Chapter 13 - Warehousing & Pot Method Warehousing Reverse Exchanges - R.P. 2000-37 R.P. 2004-51 The Pot Method Escrow Chapter 14 - Accommodators & Intermediaries Sale & Lease-Back Chapter 15 - Calculation Sheets Glossary |
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