1031 and 1035 Like-Kind Exchanges

1. Introduction
2. Information Reporting E-Filing Changes 00:01:11
3. Information Reporting E-Filing Changes - Using IRIS A2A Connection Point 00:06:20
4. The 1099-R – A Brief Overview 00:08:57
5. Like-Kind Property 00:16:56
6. Like-Kind Exchanges and IRC Code Section 1031 00:27:30
7. Like-Kind Exchanges and IRC Code Section 1031 - Who Qualifies/Exchanges 00:32:04
8. Like-Kind Exchanges and IRC Code Section 1031 - What Property Qualifies for a Like-Kind Exchange? 00:40:41
9. Like-Kind Exchanges and IRC Code Section 1031 - Form 8824 - Reporting Like-Kind Exchanges 00:52:19
10. Like-Kind Exchanges and IRC Code Section 1031 - Reminders 01:02:16
11. Like-Kind Exchanges and IRC Code Section 1031 - Other Reminders 01:04:36
12. IRC Code Section 1035 Exchanges 01:14:15
13. IRC Code Section 1035 Exchanges - 1099-R Reporting 01:20:09
14. IRC Code Section 1035 Exchanges  - Annuities and 1035 Exchanges 01:24:41
15. IRC Code Section 1035 Exchanges  - Transfers and the 1035 Exchange 01:31:35
16. Protect Yourself  01:35:52
17. Presentation Closing 01:40:03

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  Steven Mercatante

  Steven Mercatante is the principal and founder of TIR Consulting, LLC. He is a nationally recognized leader in tax reporting education and consulting on specialized compliance issues. He has conducted on-site consultation for corporate clients from across the world and led countless seminars and web [...]

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• 1031 Exchanges 00:00:04, 00:02:59, 00:16:57, 00:22:44, 00:25:36, 00:32:06, 00:50:39, 01:05:10
• 1035 Exchanges 00:00:06, 00:02:59, 00:07:34 , 01:02:17, 01:16:23, 01:31:28  
• Accounts Payable (AP) 00:02:45
• Annuities 00:07:17, 01:24:41
• Artificial Intelligence (AI) 00:04:07
• Asset 00:21:34, 01:02:55
• Audit 00:03:16
• Beneficiary 00:12:04
• Bonus Depreciation 00:18:39
• Capital Gain 00:17:36, 00:28:20
• C Corporation 00:32:18
• Contract 00:07:28, 01:18:04, 01:20:14
• Deferred Exchange 00:29:29, 00:34:19, 00:58:10, 01:04:05
• Depreciable Property 00:30:
• Federal Insurance Contributions Act (FICA) 00:08:52
• Federal Unemployment Tax Act (FUTA)  00:08:52
• FIRE - File Information Returns Electronically 00:05:04
• Form 1099-R 00:06:59, 00:09:04, 00:52:25, 01:18:32
• Form 8824 00:07:43, 00:52:23
• Form W-2 00:08:52
• Form W-8 01:24:27
• Form W-9 00:06:54
• Information Returns Intake System (IRIS) 00:04:49
• IRA (Individual Retirement Account) 00:08:00, 00:09:31, 00:1:41
• Liability 00:28:22
• Like-Kind Exchange 00:01:01, 00:24:34, 00:25:44, 00:40:00, 00:52:32
• Limited Liability Company (LLC) 00:33:21
• Partial Exchange 01:07:56, 01:27:31, 01:30:38
• Personal Property 00:22:46, 01:02:42
• Real Property 00:23:02, 00:25:46, 01:05:25
• Reverse Exchange 00:36:51
• Roth IRA 00:08:07, 00:10:05
• S Corporation 00:32:19
• Secure Act 2.00:09:41
• Tariff 00:02:34
• Transaction 00:24:38, 00:38:22, 01:16:17
• Transmitter Control Code 00:05:18

1031 Exchanges: Under Section 1031 of the United States Internal Revenue Code, a taxpayer may defer recognition of capital gains and related federal income tax liability on the exchange of certain types of property, a process known as a 1031 exchange.

1035 Exchanges: A 1035 exchange is a provision in the tax code which allows you, as a policyholder, to transfer funds from a life insurance, endowment or annuity to a new policy, without having to pay taxes.

Accounts Payable (AP): The amount of money a company owes creditors (suppliers, etc.) in return for goods and/or services they have delivered.

Annuities: An annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates.

Artificial Intelligence (AI): Artificial intelligence is intelligence demonstrated by machines, as opposed to the natural intelligence displayed by humans or animals.

Asset: Property owned by a person or company, regarded as having value and available to meet debts, commitments or legacies.

Audit: A formal examination of an organization's or individual's accounts or financial situation

Beneficiary: A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor.

Bonus Depreciation: A valuable tax-saving tool for businesses. It allows your business to take an immediate first-year deduction on the purchase of eligible business property, in addition to other depreciation. (www.thebalancesmb.com)

C Corporation: A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately. Most major companies are treated as C corporations for U.S. federal income tax purposes.

Capital Gain: Capital gain is an economic concept defined as the profit earned on the sale of an asset that has increased in value over the holding period. An asset may include tangible property, a car, a business, or intangible property such as shares.

Contract: A written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.

Deferred Exchange: The deferred 1031 exchange gives you time by allowing you to “sell” your first property to an intermediary, who then “buys” the property on the other end of the exchange at a later date. This keeps the entire series of actions as one transaction, which makes it eligible for a 1031 exchange, albeit a “deferred” one.

FIRE - File Information Returns Electronically: The IRS FIRE system is the electronic network used to accept and process most types of filing forms. Technically, it stands for File Information Returns Electronically.

Federal Insurance Contributions Act (FICA): The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

Federal Unemployment Tax Act (FUTA): The Federal Unemployment Tax Act (FUTA) is a federal law that imposes an unemployment tax on employers. The FUTA tax funds the federal government's oversight of each state's unemployment program. Only employers pay FUTA tax. You must deposit the tax quarterly and file an annual form.

Form 1099-R: Form 1099-R is a tax form from the Internal Revenue Service (IRS) for reporting distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts, or pensions.

Form 8824: Use Parts I, II, and III of Form 8824 to report each exchange of business or investment property for property of a like kind. Certain members of the executive branch of the Federal Government and judicial officers of the Federal Government use Part IV to elect to defer gain on conflict-of-interest sales.

Form W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)

Form W-8: Form W-8 is filled out by foreign entities (citizens and corporations) in order to claim exempt status from certain tax withholdings. The form is used to declare an entity's status as non-resident alien or foreign national who works outside of the United States.

Form W-9: Form W-9 (officially, the "Request for Taxpayer Identification Number and Certification") is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS). It requests the name, address, and taxpayer identification information of a taxpayer (in the form of a Social Security Number or Employer Identification Number). - Wikipedia (https://en.m.wikipedia.org/)

IRA (Individual Retirement Account): IRA stands for Individual Retirement Account, a personal, tax-advantaged savings account designed to help individuals save for retirement.

Information Returns Intake System (IRIS): The Information Returns Intake System (IRIS) Taxpayer Portal is a system that provides a no cost online. method for taxpayers to electronically file Form 1099 series. The Taxpayer Portal allows you to enter. data to create Forms 1099 by either keying in the information or uploading a .csv file.

Like-Kind Exchange: A like-kind exchange under United States tax law, also known as a 1031 exchange, is a transaction or series of transactions that allows for the disposal of an asset and the acquisition of another replacement asset without generating a current tax liability from the sale of the first asset.

Limited Liability Company (LLC): An LLC is a corporate structure where members cannot be held accountable for the company’s debts or liabilities. This can shield business owners from losing their entire life savings if, for example, someone were to sue the company. Can be a single member (much like a sole proprietor) or a multi-member. It shares certain traits of both corporations as well as partnerships or sole proprietorships. It is not a corporation.

Partial Exchange: Clients may exchange a portion of an annuity contract for another annuity contract tax-free when certain requirements are met. The basis and income will be split pro rata between the two contracts, which creates a potential for abuse.

Personal Property: Personal property is something that you could pick up or move around. This includes such things as automobiles, trucks, money, stocks, bonds, furniture, clothing, bank accounts, money market funds, certificates of deposit, jewels, art, antiques, pensions, insurance, books, etc.

Real Property: Real property is land and any property attached directly to it, including any subset of land that has been improved through legal human actions. Examples of real properties can include buildings, ponds, canals, roads, and machinery, among other things

Reverse Exchange: The Reverse Exchange is the opposite of the Delayed Exchange. Where the Delayed Exchange requires the Exchangor to relinquish property before he acquires property, the Reverse Exchange allows the Exchangor to acquire property first and relinquish property second.

Roth IRA: A Roth IRA is an individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.

S Corporation: An S corporation, for United States federal income tax, is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes.

Secure Act 2.0: The SECURE 2.0 Act, passed in late 2022, is a federal law designed to encourage retirement savings and strengthen the retirement system by building on the original SECURE Act of 2019, with provisions that include expanding automatic enrollment in retirement plans, increasing catch-up contributions, and allowing employers to match student loan payments as retirement contributions.

Tariff: Tariffs are taxes imposed by one country on goods imported from another country. Tariffs are trade barriers that raise prices, reduce available quantities of goods and services for US businesses and consumers, and create an economic burden on foreign exporters.

Transaction: In QuickBooks, a transaction type identifies what kind of transaction occurred, such as a customer transaction, bill payment or a bank transfer. When you submit a transaction, you type in a transaction code to represent it.

Transmitter Control Code (TCC): The Transmitter Control Code (TCC) is an identifier that the IRS uses to distinguish different electronic filing companies. It's necessary when you need to file for a correction. Getting a TCC depends on how you file your 1099 forms