This course covers the basics of 1031 Exchange, its definition, background, benefits, and associated concepts, terminology, processes, rules, and examples. The course teaches licensees about how investor(s) might defer Capital Gains by utilizing the features of Section 1031 of the U.S. Internal Revenue Code. Provides 3 hours of CE credit.
Course enables students to:
- Gain broad understanding of the definition of 1031 exchange and its purpose and benefits
- Understand relationship between taxes and exchanges
- Identify the appropriate or advantageous circumstances for employing 1031 exchange
- Understand purpose and history of 1031 exchange concept
- Distinguish between properties and do and do not apply to 1031 exchange
- Define tax-deferred exchange
- Understand consequences of violating 3 key rules
- Understand key vocabulary and terms related to 1031 exchange
- Understand the concept and distinction between held and like-kind leases
- Identify key factors to qualify a sale use in 1031 exchange
- Explain the identification rule
- Explain the Three-Property, 200% and 95% rules
- Explain the Second Half Rule
- Explain the ‘Title Rule’
- Understand construction and replacement in context of 1031 exchange