Exploring 1031 Exchanges

After facing several legislative threats for more than a decade, Section 1031 of the Internal Revenue Code has survived four Presidential administrations and several Congresses that proposed eliminating or crippling the statute. After the Tax Cuts and Jobs Act of 2017, Section 1031 now covers only real property, but that asset class was by far the most popular use of the tax strategy. This makes a working knowledge of Section 1031 important for both practicing and non-practicing lawyers who touch the real estate field. Matthew E. Rappaport, Chair of Falcon, Rappaport & Berkman's Taxation and Private Client Groups, will cover Section 1031 from scratch, assuming only a basic knowledge of real estate transactions and real estate finance. It will provide novices with a working knowledge of Section 1031; provide moderately experienced professionals a useful refresher, and provide all professionals an overview of advanced Section 1031 concepts.

Learning Objectives:

1. Define a Section 1031 exchange and explain why real estate owners enact one, as compared with Qualified Opportunity Funds

2. Identify the requirements for executing a successful Section 1031 exchange, including "like-kind" and "qualified use"

3. Complete a Section 1031 exchange in a tax-compliant fashion

4. Select qualified intermediaries and understand their crucial role

5. Navigate the 45-day identification deadline and the 180-day deadline to close on replacement properties