Section 1031 Like-Kind Property Exchanges of Real Estate: Navigating a Complicated Transactional Process
Types of Like-Kind Property Exchange; Transaction Participants and Their Roles; Drafting Considerations and Best Practices
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will guide counsel through the complicated transactional process of Section 1031 like-kind real property exchanges. The panel will provide a detailed discussion of the four main types of like-kind property exchanges, and which may apply to certain transactions. The panel will discuss what property qualifies for like-kind exchanges, the exchange participants and their roles, and the steps and documents required for a Section 1031 exchange. Finally, the panel will address key provisions and drafting considerations for exchange and assignment agreements.
Outline
- Overview of IRC Section 1031 like-kind property exchanges
- Purpose of like-kind property exchanges and overview of tax implications
- Qualifying property
- Second and vacation homes
- Dealer property
- Like-kind property
- Identifying replacement property
- Special identification issues for DST interests
- Contiguous property
- Applying the 200% rule
- Exchange participants and their roles
- Types of like-kind property exchanges
- Simultaneous exchange
- Delayed exchange
- Safe harbor reverse exchange
- Non-safe harbor reverse exchanges/construction or improvement exchange
- Section 1031 like-kind property exchange process
- Required steps
- Important deadlines
- Necessary documents
- Transactional agreements
- Exchange agreement
- Purpose
- Key provisions and drafting considerations
- Assignment agreement
- Purpose
- Key provisions and drafting considerations
- Others
- Exchange agreement
- Practice pointers on exchanges involving LLCs and partnerships
- The "same taxpayer" rule
- Drop and swap Issues
- Using the rules of the installment method of Code Section 453
- Post-exchange distributions
- Post-exchange refinancings
- Best practices
Benefits
The panel will review these and other important issues:
- What are the four main types of like-kind property exchanges and under what circumstances should each be used?
- How do the types of exchanges differ from each other?
- What are the unique transactional requirements for each type of like-kind property exchange?
- Who are the participants in the exchange transaction and what are their roles?
- What are the unique provisions and drafting considerations related to the exchange and assignment agreements?
Faculty
Craig Brown
Vice President and Regional Manager
Investment Property Exchange Services
Mr. Brown has overseen the facilitation of more than 5,000 real and personal property exchanges with total values in... | Read More
Mr. Brown has overseen the facilitation of more than 5,000 real and personal property exchanges with total values in excess of $3 billion. He works with the firm's specialty divisions and GC for parking title exchanges and multiple asset exchanges. Mr. Brown has trained over 7,500 attorneys, CPAs, REALTORS® and escrow officers and conducts in-house training on like-kind exchanges, teaches like-kind exchange continuing education courses and is a frequent legal, real estate and tax association speaker.
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Marie C. Flavin
Senior Vice President/Northeast Regional Manager
Investment Property Exchange Services
Ms. Flavin is a member of the New York and Connecticut Bars, and has been practicing real estate law since 1992. She... | Read More
Ms. Flavin is a member of the New York and Connecticut Bars, and has been practicing real estate law since 1992. She has been specializing in 1031 exchanges with IPX since 1999. In her position as Northeast Regional Manager of Investment Property Exchange Services, Ms. Flavin frequently lectures and writes articles on IRC § 1031 tax deferred exchanges. She teaches Continuing Legal Education and Continuing Professional Education to Attorneys and CPA’s. Ms. Flavin is an adjunct professor at the University of New Haven where she teaches Business Law. She received her B.A. from St. John’s University and her J.D. from St. John’s School of Law in 1992.
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Edward J. Hannon
Shareholder
Polsinelli
Mr. Hannon, attorney and certified public accountant, concentrates his practice on providing advice and counsel to... | Read More
Mr. Hannon, attorney and certified public accountant, concentrates his practice on providing advice and counsel to clients on the use of various tax-savings structures in a variety of real estate matters. He has worked with clients in providing advice on tax-driven structures involving real estate located throughout the United States. His practice ranges from joint ventures for real estate development projects to projects that include investment in U.S. real estate by foreign investors and tax-exempt entities. Mr. Hannon has an in-depth understanding of regulations, including Section 1031 of the Internal Revenue Code and Delaware Statutory Trusts (DST) and tenant common structures to facilitate the like-kind exchange process. He is co-leader of Polsinelli’s DST working group and has advised various real estate companies on the use of the Delaware Statutory Trusts structure to raise co-investment capital.
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