IS: Like-Kind Exchanges

General Description:

The Individual Series of classes is designed for tax return preparers and new tax professionals. 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.

Learning Objective:

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 exchange 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.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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