The Ultimate Exchange Manual! (2001 Edition)
Are you an experienced exchanger of real estate or just learning about the tax advantages of a tax-deferred exchange? Either way, you need to know the rules of exchanging to structure an exchange in compliance with Internal Revenue Service rules and regulations.
Understanding the rules of exchanging also gives you the knowledge to recognize exchange opportunities for yourself or a client!
Principles of Tax-deferred Exchanging (2001 Edition) is written for exchanging taxpayers, attorneys, real estate brokers, accountants, and escrow agents. There are very few experts in tax-deferred exchanging and Principles doesn't assume you are one. This guide is written in plain English for the reader who wants to learn about the nuts and bolts of tax-deferred exchanging. Its goal is to teach the reader--not to impress the reader! For the reader who wishes to explore the intricacies of Internal Revenue Code Section 1031 it is included in full and all sections contain citation to authority.
Principles of Tax-deferred Exchanging (2001 Edition) is a user-friendly manual that explains the many rules of exchanging in an easy-to-understand format. And its detailed Table of Contents makes it a handy reference guide. If you're not sure whether Principles of Tax-deferred Exchanging (2001 Edition) can provide the answers you need, take a look at the Table of Contents below.
About the Author
Jo Kline Cebuhar, an Iowa attorney, is a 1974 graduate of Iowa State University and a 1984 graduate of Drake University Law School. In 1988, she opened Iowa Escrow, the first real estate closing agency in the State of Iowa.
Involved in tax-deferred exchanges since 1991, Jo was a frequent lecturer on the topics of tax-deferred exchanging, title insurance, and real estate closing procedures. Jo is currently promoting her newest book "Last Things First"
Principles of Tax-deferred Exchanging (2001 Edition)
Table of Contents Summary
Chapter 1 - Introduction
- Tax-deferred exchanges in a nutshell
- Who should read this book?
- Putting together the exchange team
- The most important member of the team
- Overlapping roles
Chapter 2 - Why consider an exchange?
- Internal Revenue's definition of an exchange
- Which is deferred: the taxes or the exchange?
- Exchange of real vs. personal property
- Who should consider a tax-deferred exchange?
Chapter 3 - Recognition of gain or loss
- Gains and losses
- Capital gain vs. ordinary income
- Installment sales
Chapter 4 - Types of exchanges
- Simultaneous vs. deferred exchanges
- Two-way exchanges
- Three-way exchanges
- Four-way exchanges
- Reverse exchanges
- Section 1034 - Exchanging a personal residence
- Section 1033 - Involuntary conversions
Chapter 5 - No gain or loss shall be recognized...
- Calculating gain or loss
- Nonrecognition of gain/tax-deferral
- Mandatory tax treatment
- What if the exchange results in a loss?
- The receipt of boot
- Recognized gain in a tax-deferred exchange
- Selling expenses
- Basis of the replacement property
- Installment sales
Chapter 6 - ...property held for productive use in a trade or business or for investment...
- The "property" requirement
- Exchanging personal property
- Requirement that property is "held"
- Productive use or for investment
- Exclusions from exchange treatment
- Relinquishing boot in an exchange
- Multiple asset exchanges
Chapter 7 - ...is exchanged...
- An exchange is not a sale and a purchase
- Documenting the intent to exchange
- Identification Period
- Exchange Period
- Number of replacement properties that can be identified
- Receipt of replacement property
Chapter 8 - ...solely for property of like kind...
- What constitutes like/kind property?
- The taxpayer's interest in the property
- Incidental personal property
- Replacement property to be produced or built
- Actual or constructive receipt of proceeds
- Disqualified persons
- Safe Harbors in a tax-deferred exchange
- Receiving boot in the exchange
- Basis of the replacement property
- Multiple asset exchanges
Chapter 9 - ...to be held either for productive use in a trade or business or for investment.
- The receipt of boot
- The "property" and "held" requirements
- Holding period
Chapter 10 - Exchange timelines
- Selecting the best method of exchanging
- Simultaneous or deferred?
- Exchange timelines
Chapter 11 - Watch out for the land mines!
- State laws affecting exchanges
- Exchanges between related parties
- When is an exchange a bad idea?
- Avoiding tax-deferred exchange treatment
- When an exchange fails
Chapter 12 - Answers to Common Questions
Chapter 13 - Glossary
Chapter 14 - Internal Revenue Code Section 1031