Taking Advantage of Installment Sales and Like-Kind Exchanges Download
Saturday, May 1, 2021 – Saturday, April 30, 2022
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 §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 §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 §453?
- When can a taxpayer utilize the provisions of IRC §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?
- Reporting an installment sale when related parties are involved
- Calculating 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 §1031?
- When can a taxpayer utilize the provisions of IRC §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?
- Calculating a like-kind exchange including any taxable portion
- How has the Tax Cuts and Jobs Act impacted the use of like-kind exchanges?
- Recent changes to like-kind exchanges as the result of IRS final regulations