Surgent's Taking Advantage of Installment Sales and Like-Kind Exchanges (ISL4)
Wednesday, January 29, 2020 – Friday, April 30, 2021
When real property is sold for a gain, we always try to find ways to defer recognizing income so it won't be necessary to send a check to Uncle Sam. There are two provisions within the Internal Revenue Code that allow the taxpayer to defer recognition of immediate taxable gain in the year of sale: installment sales and like-kind exchanges. Knowing how and when to utilize these provisions makes the CPA very valuable to either their client or the entity they work for.
- Learn when and how to utilize the provisions of IRC Section 453 in order to defer recognizing gain on the sale of real property via installment sales
- Learn when and how to utilize the provisions of IRC Section 1031 in order to defer recognizing gain on the sale of real property via a like-kind exchange
- How does the IRC define an installment sale under Section 453?
- When can a taxpayer utilize the provisions of IRC Section 453?
- When should a taxpayer utilize the provisions of an installment sale and when should it be avoided
- How does the issue of a “dealer” vs. a “non-dealer” impact the use of the installment sale method
- How to report an installment sale when related parties are involved
- How to calculate an installment sale
- How has the Tax Cuts and Jobs Act impacted the use of the Installment Sale Method
- What is a like-kind exchange as defined by IRC Section 1031
- When can a taxpayer utilize the provisions of IRC Section 1031
- What types of real property are eligible for like-kind exchange treatment and what types are not
- What is “boot” and how does it impact the like-kind exchange deferral
- How to calculate a like-kind exchange including any taxable portion
- How has the Tax Cuts and Jobs Act impacted the use of like-kind exchanges