Students will gain a thorough understanding of what constitutes a §1031 exchange, the rules and regulations that must be followed to qualify a transaction for §1031 treatment, and the variations on simultaneous exchanges that are available. They will also learn the different types of property that are deemed "like kind" for the purposes of §1031 qualification, some pitfalls to be aware of in suggesting this type of transaction, and how §1031 can give you an opportunity to add clients and commissions to your real estate practice. The student should already have some degree of familiarity with income taxation, at least as it relates to real estate, before starting this course. Tax expertise is not a prerequisite, but if you have no knowledge in this area at all, you may find the course very challenging.

Learning Objectives

At the completion of this course, the learner will be able to:

Describe what constitutes a §1031 exchange and the rules and regulations that must be followed to qualify a transaction for §1031 treatment
Define the advantage of using the 1031, such as tax savings, increasing the depreciable basis of the property, adding sheltered income to your clients’ investment portfolio to diversify your client’s holdings, etc.
Explain the variations on simultaneous exchanges that are available.
List the different types of property that are deemed "like kind" for the purposes of §1031 qualification
Identify the pitfalls to be aware of when suggesting this type of transaction
State how §1031 can give brokers an opportunity to add clients and commissions to their real estate practice
Explain to your client how an exchange can make a substantial difference in his/her tax result.

Topics Covered

Lesson 1: The Basics

Lesson 2: Boot

Lesson 3: Issues in 1031 Exchanges

Lesson 4: Variations

Lesson 5: State Tax Issues

Approved States: CO

What State Can I Purchase This Course?

Colorado