UNDERSTANDING LIKE-KIND REAL ESTATE EXCHANGES
In this seminar you'll learn...
What are the benefits of exchanging property instead of selling?
Who should consider like-kind exchanges?
What types of properties qualify under IRS rules for like-kind exchanges?
What kinds of professional help will you need?
And much more!
Sometimes profitability comes from knowing the rules and using them to play the game properly. Case in point: Selling real estate. Selling properties can create a huge tax blow on the equity you´ve built—but it doesn´t have to be that way. The IRS provides rules allowing you to exchange property instead of sell and buy in separate transactions—thereby sheltering your profits from capital gains taxes. The rules are tricky and often misunderstood, but our workshop clears up all the murky in´s and out´s of handling these exchanges properly, and lawfully. Take advantage of this little-understood law and put your money to work for you!
WORKSHOP AGENDA
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Program hours: 9:00 a.m. – 4:00 p.m.
The basics of like-kind real estate exchanges: What are they? What are the benefits?
What constitutes a like-kind real estate exchange?
Tax-exempt or tax-deferred? ... the basic tenet of like-kind exchanges
The three requirements for "nonrecognition of gain"
Swap, exchange or sale ... what´s the difference?
What are the most common misconceptions about real estate exchanges?
How real estate exchanges benefit buyers and sellers
Leveraging your wealth ... how real estate exchanges can put money in your pocket
Are like-kind exchanges for you?
Your goals and how they affect your decision to exchange
Property type and use: What are the four tax classifications for real estate and which are eligible for exchange?
How purpose affects the validity of exchanges
Comparing apples to oranges ... what kinds of properties can you exchange for one another?
Exactly who owns what? How property titling can make or break your exchange.
What kinds of assets are excluded from tax-deferred status?
Even exchanges, trade up or down
How does the exchange process work?
Rule #1: State your intention, right from the start
Out with the old; in with the new: Selling your property and identifying potential replacement properties
Making sure the proceeds are not taxable—intermediaries and escrow accounts
The three rules of replacement properties: The three-property rule, the 200-percent rule and the 95-percent rule
Documentation—the exchange agreement, assignments and notice: The what and when of filing the appropriate paperwork
The IRS demands objectivity: The function of the qualified intermediary ... and who can serve as one
Timing is everything: Rules that regulate the timing of your exchange
Timing the sale of your property—coordinating sell and buy dates with tax deadlines
What if you change your mind? Revoking replacement properties.
Different types of exchanges—delayed, simultaneous, improvement/build-to-suit and reverse exchanges
Don´t let money touch your hands: Why an escrow account is imperative and when you should open it
Special considerations: Ownership, financing, construction, titles and depreciation
Financing the property you sell: How to carry notes and not pay taxes on the income
What to do when you want to refinance: Learn what´s allowable and what will negate your tax-deferred status
Partnerships and how they affect tax-deferred status
Parting ways: How to handle exchanges in partnerships when some parties want to opt out of ownership
What if you want to exchange real estate that has not yet been built? The ins and outs of constructing replacement property.
When do leases qualify for exchanges?
Depreciation—and how it affects the like-kind exchange
When tangible and incidental property are part of the equation
Vacation homes and other owner-occupied property issues
The marriage equation: What about exchanges between spouses?
Doing your math—computing basis, capital gain and understanding tax forms
Estimating your capital gains, with and without an exchange
Don´t confuse capital gain with equity
Taxable portions of your real estate exchange ... the boot and how it works
Don´t be caught off guard: The importance of figuring the basis of your property ... and those you plan to buy
Both sides of the mortgage exchange: Understanding and figuring assets and liabilities from trading mortgages
Uncle Sam bats last: The tax forms you´ll need to file ... and the critical information you need for each one
Avoiding the pitfalls ... and getting the professional help you need
What problems do people most often encounter when entering into a like-kind exchange?
Six simple things that can disqualify your like-kind exchange
Professionals who can be of assistance: The role of attorneys, accountants, real estate professionals and professional intermediaries
Tips on selecting a professional intermediary
Newer IRS rulings that affect your exchange
US/Canada:
1-800-867-4340
United Kingdom:
0800 968254
Australia:
1 800 145 233
New Zealand:
0800 447 299
or e-mail us at:
onsite@skillpath.net
1-800-867-4340
United Kingdom:
0800 968254
Australia:
1 800 145 233
New Zealand:
0800 447 299
or e-mail us at:
onsite@skillpath.net
