Course Year: 2012
Course Level: Intermediate
Prerequisite: Basic understanding of Form 1040 or Introduction to Tax Preparation course
Advance Preparation: None
* NATP will report CPE credits to the IRS for all PTIN holders. CPE is currently not mandatory for RTRPs or RTRP candidates and any option to register or participate in this program is strictly voluntary.
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Fees: $65 for Members and $89 for Nonmembers
This course is designed to help tax professional recognize qualifications and tax reporting of like-kind exchanges under §1031. The material explores the basic tax and nontax treatment of like-kind exchanges along with various related transactions that may apply to the like-kind exchange.
Table of Contents
Upon completion of this course, you will be able to:
- Understand the rules and regulations of §1031 along with terminology used during an exchange.
- Recognize eligible property for an exchange.
- Consider relevant situations which qualify for like-kind exchange treatment.
Address exchange problem areas such as holding periods, related parties and intent of property ownership.
Review safe harbors used to avoid disallowance of like-kind exchange treatment.
Understand how debt affects exchange transactions.
Explore relevant court cases involving allowed and disallowed exchanges and circumstances that lead to the Court’s decided.
Calculate the basis of property received in a like-kind exchange transaction.
Determine the difference between the basis calculation for like-kind property and non-like-kind property received in an exchange.
Review special rules for depreciation of assets received and terms used during and after an exchange.
Understand excess basis, exchange basis, and how to elect out of this treatment.
Apply the luxury auto limits for depreciation of exchanged vehicles under §1031.
Determine if the exchange qualifies and which transactions do not qualify such as a sham arrangement to avoid tax for example.
Understand the tax terms used during the exchange in relation to who is the exchanger and eligible to receive the exchanged property.
Review §1245 and §1250 recapture when gain is recognized in an exchange.
Explore other code sections that apply to the exchange such as §121 exclusion of gain on the sale of a principal residence.
Identify how mixed use property is treated and whether the like-kind exchange safe harbor can be applied.
Calculate gain and basis for multiple property exchanges.
Review and understand the four parts of Form 8824, Like-Kind Exchanges.
Complete Form 8824 for basic like-kind exchanges.
Explore additional forms (Form 4797, if applicable) needed to complete the return.
Apply both §§121 and 1031 to the same transaction.
For more information regarding refund, complaint and/or program cancellation policies, please contact our Member Services Department at 800.558.3402, ext. 3.
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