Tax Deferred 1031 Exchanges

Tax Deferred 1031 Exchanges

Course Credit:	This course counts as one of the required tax courses necessary to attain the ALC Designation. Counts as 20 credits that may be applied towards the ALC Designation. This course is required to attain the RSPS Certification. Counts as one elective credit toward the CCIM Designation.
Course Duration:	2 Days

This course was developed by the REALTORS® Land Institute (RLI) specifically for those real estate practitioners that are interested in learning about tax deferred 1031 exchanges. Below is a list of the course objectives as well as the course outline.

Interested in obtaining the Accredited Land Consultant ALC designation? Click on the following link to view the ALC Designation requirements.

Tax Deferred 1031 Exchanges Course Objective

At the end of this course, the participant will be able to:

Gain an understanding of how the rules governing 1031 tax-deferred real property exchanges are applied and how transactions are put together.
Explain the tax deferral benefits of a 1031 exchange.
Recognize and evaluate situations in which a 1031 tax deferred exchange could be to the clientís advantage.
Involve and work with intermediaries and other experts to structure the transaction.

Tax Deferred 1031 Exchanges Course Outline

Section 1: The Fundamentals:

	The first portion of the course covers the principles of 1031 tax-deferred real property exchanges.
	1031 exchanges—a tax deferral, equity preservation opportunity Eligibility for a 1031 exchange Business and investment objectives for a 1031 exchange Advantages and disadvantages of a 1031 exchange Four basic rules Boot in 1031 exchanges Basis Identifying properties Documenting intent to exchange Reporting the transaction Types of exchanges Tenants-in-common exchanges

Section 2: Safe Harbors and Intermediaries:

	Most exchanges necessitate use of a safe harbor and an accommodator or intermediary to structure the transaction. This portion of the course focuses on working with intermediaries and safe harbors to handle the complexities of exchanges and assure that the goal of tax deferral is met.
	Four safe harbors Security of guarantee arrangements Qualified escrow accounts and trusts Interest and growth factors Qualified intermediaries Disqualification as an intermediary How are real estate agents paid?

Section 3: Practicum:

	The workshop portion of the course helps participants put concepts into action by working through case study examples.
	Case Study 1: Asking the right questions Case Study 2: A deferred exchange Case Study 3: Tenants-in-common Case Study 4: The family farm

Section 4: Putting the Deal Together:

Recognizing and evaluating potential exchange situations
Finding an accommodator/intermediary
Pitfalls to avoid

Section 5: Completion Exam

End of outline