Fundamentals of 1031 Exchanges 2024

Overview

Cover critical aspects, common problem areas and strategies for successful 1031 exchanges. Examine Form 8824 preparation, replacement property adjusted basis computations, advanced 1031 strategies and more. Study advanced 1031 exchange strategies such as reverse exchange, partners/TIC structures, and improvement exchanges (including “Bartell” parking arrangements). Bring questions and increase your expertise. Updated in 2018 for effects of the 2017 tax reform act.

Highlights

• Statutory framework for 1031 exchanges • Business and investment property characterization • Deferred exchange rules and techniques • Exchange mathematics: boot, gain and basis • Reporting for failed exchanges (over two tax periods) • Improvement, reverse and non-safe harbor exchanges • Partnership and TIC issues: IRC Sec. 761

Prerequisites

Basic knowledge of tax return preparation or familiarity with investment real estate planning, brokerage or operations.

Designed For

CPAs, attorneys, CFPs, enrolled agents, real estate and tax professionals.

Objectives

• Recognize how to prepare IRS Form 8824 • Determine 1031 exchange mathematics, including napkin test, boot and adjusted basis • Identify conceptual issues in 1031 exchanges • Discover advanced concepts, such as improvement exchanges, reverse exchanges, non-safe harbor exchanges and drop-and-swap • Determine ethics and client counseling issues • Identify how to evaluate and counsel clients about risk

Preparation

None