Like-Kind Exchanges: A Practitioner’s Guide to IRC §1031

Like-Kind Exchanges: A Practitioner’s Guide to IRC §1031

I. Overview of IRC §1031

• Purpose and policy behind tax-deferred exchanges
• Statutory framework and four general requirements
• Benefits of tax deferral and strategic advantages

II. Qualifying Property & Investment Intent

• Definition of real property (Treasury Regulations effective Dec. 2020)
• What qualifies and what does not
• “Held for investment” requirement and relevant case law
• Business vs. investment use

III. Structuring the Exchange

• Exchange requirement and avoiding constructive receipt
• Role of the Qualified Intermediary
• Safe harbor rules and “G(6)” restrictions

IV. Critical Deadlines & Identification Rules

• 45-day identification period
• 180-day exchange period
• 3-Property Rule, 200% Rule, 95% Rule
• Disaster extensions

V. Maximizing Tax Deferral

• Reinvestment and debt replacement requirements
• Understanding and avoiding “boot”
• Back-of-the-envelope gain calculations

VI. Advanced Exchange Structures

• Forward exchanges
• Reverse exchanges (Rev. Proc. 2000-37)
• Parking arrangements and Exchange Accommodation Titleholders (EATs)

VII. Current Developments & Practical Considerations

• Partnership issues
• Incidental personal property rules
• Risk management and compliance considerations

Presenter

Eric Brecher, Esq., CES®

Chicago Deferred Exchange Company – Wintrust Financial Corp

New York, New York

This program is sponsored by the Real Property Law Section.