Like-Kind Exchanges

Description

Participants will acquire an understanding of the underlying authority for, and possible complexity of seemingly simple tax questions, and how that authority ties into tax software programs and preparation of the tax return for an individual. This course specifically addresses like-kind exchanges (§1031) and filing Form 8824. 

Highlights

LINK AND INSTRUCTIONS TO COME FROM AES TAX ONE DAY PRIOR TO SESSION 

Objectives

After completing this course the participant will be able to:

• Summarize the statutory requirements for qualifying as a like-kind exchange.
• Illustrate the basic rules that deal with the mechanics of like-kind exchanges, including boot, transaction costs, debt rules, and depreciating the replacement property.
• Determine the types of property that qualify as replacement property, including the treatment of vacation home exchanges and using a Delaware Statutory Trust (DST).
• Demonstrate the interaction of an installment sale with a like-kind exchange.
• Describe the use of multi-party like-kind exchanges.
• Define "real property" after the Tax Cuts and Jobs Act.
• Discuss the rules that apply to exchanges with related parties.
• Demonstrate the options for members of an LLC to use the like-kind exchanges rules.
• Recognize opportunities for deferred like-kind exchanges, Starker exchanges, and reverse Starker exchanges.
• Recognize the state tax problems of a like-kind exchange.
• Complete a Form 8824 using the settlement sheets for the relinquished property and replacement property in determining gain recognized and basis in the replacement property.

Designed For

Tax preparers and new tax professionals.