Self-Study

Taking Advantage of Installment Sales and Like-Kind Exchanges Download

  • Saturday, May 1, 2021 – Saturday, April 30, 2022

  • 4.00
    CREDITS
    Taxes

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.

Objectives

  • 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

Highlights

  • 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

Additional Information

Designed For

CPAs who either represent or work for entities that own real property

Vendor

Surgent

Advanced Preparation

None

Credits

4.00 Taxes

Prerequisite

A basic understanding of the provisions for recognizing gain or loss on the sale of real property

Course Number

2125104

Level of Knowledge

Intermediate

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