1031 Exchange Legal Bootcamp
Do you have the skills necessary to carry out a successful 1031 exchange? This insightful course will guide you through the detailed and strict process basics and legal principles, from the initial requirements and mechanics to reverse exchanges and tenant-in-common transactions. Don't miss this chance to help your clients take advantage of the tax benefits associated with these exchanges - order today!
- Discuss when a 1031 exchange should be considered.
- Understand the requirements for setting up a 1031 exchange.
- Learn how to properly file and report taxes associated with the exchange.
- Review problems and examples with 1031 exchanges.
- Identify issues with reverse exchanges.
- Examine partnership and tenant-in-common transactions.
This is a rebroadcast of the original webcast delivered by Paul J. Linstroth and Jeffrey R. Peterson on December 6, 2019. Faculty will be available to answer your questions after the program.
10:00 AM to 5:00 PM Eastern Standard Time
Presenters: Paul J. Linstroth and Jeffrey R. Peterson
- 1031 Basics
10:00 - 10:50
- History and Current Version of Section 1031
- Rationale - What is the Idea Behind §1031
- What is "Like-Kind" Property Under the New Version of Section 1031
- How do State Law Determinations Impact What is Considered to be Real Property (1245/1250)
- Foreign Real Property Exchanges
- Issues With Property You Use for Personal Purposes, Such as Vacation Properties
- Issues With Dealer Property, Stock in Trade or Other Property Held Primarily for Sale, Such as Inventories, Raw Materials, and Real Estate Held by Dealers
- The Same Taxpayer Requirement
- Using "Disregarded" Entities
- Accounting Requirements
10:50 - 11:40
- Napkin Test
- Partial Exchanges
- Receipt Money or Non Like-Kind Property ("Boot") in an Exchange
- Cash Boot
- Mortgage Boot
- (G)(6) Limitation
- Dealing With Closing Costs Expenses
- Dealing With Seller-Back Financing
- Mechanics of 1031 Exchanges
11:55 - 12:45
- Qualified Intermediary Safe Harbor
- Disqualified Persons That Cannot Act as the QI
- Selecting a Qualified Intermediary - Your Due Diligence and the Questions You Must Ask Before Entrusting Them With Your Client's Money
- Safe Harbor for Qualified Escrow Accounts
- Rules for Identification of Replacement Property
- Essential Requirements for Proper Identification (to be Built or Produced)
- How Can You Construct Improvements on Property That You Own?
- Bloomington Coca Cola Bottling Co.
- IRS Tax Reporting - IRS Form 8824
- Who Gets the IRS 1099S?
- Reverse Exchanges
12:45 - 1:35
- Parking Arrangements Rev. Proc. 2000-37
- BACK LEG - Parking the Replacement Property
- FRONT LEG - Parking the Relinquished Property
- Dealing With Deed Tax and Transfer Tax
- What are the Identification Requirements in a Reverse Exchange
- OVERLAPPING SAFE HARBOR - Reverse and Forward Exchanges in the Same Series of Transactions
- Issues With Financing the Acquisition of Replacement Property by EAT Construction/Improvement Exchanges
- Construction - Build-to-Suit Exchanges
- Partnership and Tenant-in-Common Transactions
2:05 - 2:55
- What is a Partnership for Federal Tax Purposes
- Special Concerns When an Exchanger is Pooling His or Her Exchange Funds With Another Buyer
- "TIC" Tenants-in-Common Arrangements
- Tenants-in-Common Risks
- Syndicated Properties Sold as Tenants-in-Common Interests/Rev. Proc. 2002-22
- Delaware Statutory Trusts
- Problems and Examples
2:55 - 3:45
- Partnership Split-Up Issues
- Drop and Swap Transactions
- Installment Sales
- Mixed Use Properties
- Pre/Post-Exchange Refinancing
- Interplay Between 1031 and the Principal Residence Exclusion Under IRC §21
- Problems-Related Party
- Replacement Properties in the U.S. Virgin Islands
- Ethics Questions
4:00 - 5:00
- Ethics Question # 1 - Due on Sale
- Ethics Question # 2 - May an Attorney Act as a Qualified Intermediary
- Ethics Question # 3 - May an Attorney Have More Than a 10% Interest in a Qualified Intermediary
- Ethics Question # 4 - Use of Exculpatory Language in the Exchange Agreement
- Ethics Question # 5 - What Reasonable and Prudent Steps Should an Attorney Take to Safeguard the Client's Funds Held by a Qualified Intermediary
- Ethics Question # 6 - Drafting Considerations in 1031 Exchanges
- Ethics Question # 7- Disclosing Environmental Contaminate
- Ethics Question # 8 - What to do if all of the Identified Replacement Properties Have Been Sold
- Ethics Question # 9 - Back-Dating Documents
- Ethics Question # 10 - Entering in to a Reverse Exchange Agreement After the Parked Property Has Closed
This course is designed for attorneys. Accountants and paralegals may also benefit from attending.