1031 Exchanges

Increase your investment returns by implementing the 1031 Exchange Rules and deferring payment of Capital Gains taxes.

47
Hrs
Mins
Secs
06
31
50
Segments Duration
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INSTRUCTOR

Scott Saunders

Scott is Senior Vice President with Asset Preservation, Inc. (API). He has an extensive background in Internal Revenue Code §1031 tax deferred exchanges, having been involved in structuring thousands and thousands of §1031 exchanges during his thirty years in the exchange industry. In addition to being an accredited speaker in numerous states, Scott was a contributing author to the book Real Estate Exchanges: Using the Tax Deferred Exchange in Real Estate Investment Management. He has written over 180 articles on various aspects of §1031 exchanges, capital gain taxation and investment real estate and is now sharing his knowledge and experience with the Renatus community as the instructor of our 1031 Exchanges course.

Description:

This course dives into the complexities of the 1031 Deferred Exchange tax code. Increase your investment returns by understanding and implementing the 1031 Exchange Rules. This strategy teaches how the qualified intermediary can facilitate a capital gains tax deferral for the real estate investor who is willing to exchange for other like-kind replacement properties. Learn how exchanges will greatly impact your cash flow and can direct your legacy planning.

  • 01

    Pre-Assessment

    This Pre-Assessment is to raise awareness of your current knowledge level and give you a glimpse of the information covered in this course.

  • 02

    Welcome and Instructor Introduction

    Currently a Senior VP at Asset Preservation Inc., Scott has created more than 100,000 exchanges. He shares the required disclosures and disclaimers.

  • 03

    The Basics of 1031

    Our instructor dives right in to a basic explanation of 1031 Exchanges and introduces terminology and an example.

  • Show all 47 segments

    • 04

      The Basics Part II

      The discussion of terminology continues from Direct Deeding to Identification Period.

    • 05

      The Basics Part III

      Like-Kind property, qualified intermediary and Revenue Procedure are three of the terms Scott explains, so the class will be able to understand the deeper explanations later on.

    • 06

      How 1031 Fits In the Tax Code

      Learn what a tax code is and how 1031 Exchanges relate to other portions of the tax code, how and when to use them most successfully.

    • 07

      The History of 1031

      Though this tax code has existed since 1921, it has evolved through the years and Scott helps us understand how it affects our exchanges today.

    • 08

      The History of 1031 Part II

      More financial and economic history is shared, bringing us up to 2018 and the most recent changes to the tax code.

    • 09

      Why Exchange?

      Consolidation and diversification are two motivations that are encouraging investors to utilize exchanges.

    • 10

      Tax Payer Motives

      Scott finishes up his discussion of the various motives tax payers have and answers a question from a class member with a personal example.

    • 11

      What's Driving 1031 Exchange Activity and the Federal Rate?

      Recent tax law changes and the current economy, with high ROIs, appreciation and gain, have created the Perfect Storm for 1031 Exchanges.

    • 12

      Net Investment Income and the Investment Real Estate Market

      Scott explains how commercial and residential real estate are two different markets, the commercial currently being the strongest. Learn how that affects you and exchanges you may make.

    • 13

      Hold, Sell or Exchange

      Why is an exchange often a better option than selling and can you make it work if the properties are not exactly alike?

    • 14

      Calculating Capital Gain

      Scott walks us through the necessary steps and uses examples with specific numbers to solidify your understanding.

    • 15

      California Claw Back and the Code

      Some states have their own laws which create differences in dealing with 1031 Exchanges. Learn the specifics of the code and how they might affect your transactions.

    • 16

      1031 Exceptions

      Knowing the exceptions to 1031 Exchanges, such as stocks, bonds & notes, can help you plan your investments more strategically and make the most profitable decisions.

    • 17

      Property Held for Sale or Investment

      Scott lists several purposes which affect our transactions, from the purpose for which the property was initially acquired to the frequency, number and continuity of sales.

    • 18

      Allen Vs The United States

      Learn from this legal case about tax law and how your intentions can be documented allowing for more 1031 Exchanges.

    • 19

      Partnerships

      Are you in a partnership? How can you work toward an exchange if you are? Scott covers these issues in this segment.

    • 20

      Exchange Vesting and Exceptions to Exchange Vesting

      Our instructor explains the importance of using the same entity to buy and sell. He also covers trusts and brings up related parties.

    • 21

      Exchanges with a Related Party

      Learn which of the four Related Party scenarios permit exchanges, and the requirements for investment transactions with family members.

    • 22

      Like-Kind Property

      What can you exchange? Land, air, and water rights? What about your personal residence? The answers may surprise you.

    • 23

      1031 Exchange and Vacation Homes

      Scott shares the Rule of Twos, which outlines the requirements that can allow you to use a vacation home as a 1031 exchange property.

    • 24

      Fractional Ownership

      What is fractional ownership and how can you exchange into it? Scott explores the benefits and the risks in this segment.

    • 25

      Fractional Ownership II

      The options and concerns surrounding fractional ownership continue as Scott answers questions from the class members.

    • 26

      Refinancing

      Learn the best time to refinance your properties, to save yourself some tax money. He also introduces the topic of holding periods for exchanged properties.

    • 27

      Intent to Hold for Investment

      Rather than time held, the intent of the hold is the most important factor in 1031 Exchanges. Scott uses two court case examples to explain.

    • 28

      Requirements For Full Tax Deferral

      The Exchange Equation is a key component in a full tax deferral and Scott explains each part and step in the equation.

    • 29

      Exchange Equation Question and Answer

      Using examples, the instructor addresses concerns and questions of the live class members, especially concerning cash and boot options in exchanges.

    • 30

      Exchange Equation Question and Answer Continued

      Scott continues addressing questions about bases and doing an exchange with a lower purchase price and still getting full tax deferral.

    • 31

      Closing Costs

      Learn what can and cannot be included as closing costs and then explore formats and variations of 1031 Exchanges.

    • 32

      Timeline and a Helpful Tip

      Important dates and timeline regulations are revealed, and Scott explains the only situations in which extensions are granted.

    • 33

      Identification Rules

      The Three Property Rule, the 200% Rule and the 95% Rule are clarified to help you know how to keep your transactions within the best timeline.

    • 34

      How do You Identify?

      Scott shares the specific regulations you need to know to properly identify and make your exchanges correctly and successfully.

    • 35

      Special Identification Issues and What Not To Do

      Identification is vital to your Exchange, so Scott addresses important issues and helps learners understand how to avoid costly mistakes.

    • 36

      Closing Issues With Exchanges

      When you are familiar with the restrictions on exchanges and issues that you'll face when closing, the chances of a successful exchange increase drastically.

    • 37

      Multiple Property Exchange And Reverse Exchange

      Scott explains the options for exchanges involving multiple properties, and discusses how and when you can do a Reverse Exchange.

    • 38

      Forms of Reverse Exchange

      The two forms of reverse exchanges are discussed, including the details you need to know to implement them.

    • 39

      The Improvement Exchange

      Learn how you can make improvements on a property and still qualify for a 1031 exchange.

    • 40

      Revenue Procedure and Split Treatment

      Our instructor goes into the relationship between tax code sections 1031 and 121, helping us with three different scenarios.

    • 41

      Converting Rental to Residence

      Important points like intent, documentation and depreciation affect your ability to use this 1031 exchange strategy.

    • 42

      Converting a Residence Into a Rental

      This exciting option is clearly explained, outlining the key elements necessary to make it happen and answering related questions from the live class.

    • 43

      FIRPTA Withholding Rules and QI

      This information involves simultaneous exchanges with no boot as well as delayed exchanges. Scott also provides a source of more details, when they are needed.

    • 44

      QI Continued

      Qualified Intermediaries are incredibly important, so Scott talks about what you need to ask, to choose one that is the best fit for your situation.

    • 45

      1031 and Seller Financing

      Seller Financing provides specific challenges, which Scott addresses utilizing 4 scenario examples and answering class questions.

    • 46

      Final Questions

      Scott finishes up the class by encouraging use of a full team of professionals and answering a question about related parties.

  • 47

    Post-Assessment

    This Post-Assessment is to measure your increased knowledge and see how much information you have retained from the course.