1031 and 1035 Like-Kind Exchanges

1. Introduction
2. Information Reporting E-Filing Changes 00:01:11
3. Information Reporting E-Filing Changes - Current Rules 00:07:43
4. What’s New: Draft Form 1099-DA 00:13:53
5. The 1099-R – A Brief Overview 00:17:56
6. Like-Kind Property 00:22:22
7. Like-Kind Exchanges and IRC Code Section 1031 00:28:49
8. Like-Kind Exchanges and IRC Code Section 1031 - Who Qualifies/Exchanges 00:33:49
9. Like-Kind Exchanges and IRC Code Section 1031 - What Property Qualifies for a Like-Kind Exchange? 00:42:57
10. Like-Kind Exchanges and IRC Code Section 1031 - Form 8824 - Reporting Like-Kind Exchanges 00:52:51
11. Like-Kind Exchanges and IRC Code Section 1031 - The Tax Cuts and Jobs Act 01:00:53
12. Like-Kind Exchanges and IRC Code Section 1031 - Reminders 01:07:10
13. IRC Code Section 1035 Exchanges 01:12:34
14. IRC Code Section 1035 Exchanges - 1099-R Reporting 01:19:57
15. IRC Code Section 1035 Exchanges  - Annuities and 1035 Exchanges 01:25:04
16. IRC Code Section 1035 Exchanges  - Transfers and the 1035 Exchange 01:35:00
17. Protect Yourself  01:36:32
18. Presentation Closing 01:39:41

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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 00:00:07, 00:06:22, 00:22:27, 00:24:31, 00:33:53, 01:04:25, 01:13:49
• 1035 Exchanges 00:00:07, 00:06:22, 01:12:44, 01:13:52, 01:22:38, 01:27:11
• Asset 00:14:21
• Bankruptcy 00:42:03
• Capital Gain 00:22:52, 00:25:55, 00:29:42, 00:40:30
• Contract 01:25:16
• Cryptocurrency 00:16:02
• Deferred Exchange 00:37:51
• Depreciable Property 00:32:15
• Exempt 00:58:49
• FIRE - File Information Returns Electronically 00:01:11
• Form 1042-S 01:22:33, 01:24:31
• Form 1099-DA 00:14:04
• Form 1099-NEC 00:02:58
• Form 1099-R 00:01:38, 00:06:31, 00:11:27, 00:17:57, 01:16:58, 01:20:06
• Form 8824 00:01:32, 00:06:29, 00:53:03, 01:00:12
• Form W-8 01:23:54
• Form W-9 01:24:54
• Information Returns Intake System (IRIS) 00:04:16, 00:09:26
• Liability 00:29:43
• Like-Kind Exchange 00:07:08, 00:22:59, 00:27:00, 00:31:39, 00:36:17, 00:43:09, 01:03:19
• Limited Liability Company (LLC) 00:34:02
• Nonresident Alien (NRA) 01:22:01
• Personal Property 00:24:12, 00:27:49, 00:46:45, 01:05:11
• Real Property 00:24:08, 00:27:04, 01:03:22
• Reverse Exchange 00:39:19
• S Corporation 00:58:46
• The Tax Cuts and Jobs Act 01:00:55, 01:04:55
• TIN 01:23:27
• Transaction 00:14:18, 00:32:07, 00:40:39, 01:00:26, 01:21:46
• Transmitter Control Code (TCC) 00:05:25
• W-8BEN 01:24:04

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.

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

Bankruptcy: is a legal proceeding in which a debtor declares their inability to pay back their creditors.

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.

Cryptocurrency: A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a digital ledger or computerized database using strong cryptography to secure transaction record entries, to control the creation of additional digital coin records, and to verify the transfer of coin ownership.

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.

Depreciable Property: Depreciable property is any asset that is eligible for tax and accounting purposes to book depreciation in accordance with the Internal Revenue Service (IRS) rules. Depreciable property can include vehicles, real estate (except land), computers, and office equipment, machinery, and heavy equipment.

Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage

Form 1042: Form 1042, also "Annual Withholding Tax Return for U.S. Source Income of Foreign Persons", is used to report tax withheld on certain income of foreign persons.

Form 1042-S: Form 1042-S is used to report amounts paid to foreign persons (including persons presumed to be foreign) who are subject to income tax withholding. For an individual taxpayer, Form 1042-S is a document provided to you (and the IRS) by the payer of the income reported.

Form 1099-DA: This form is specifically designed to handle the reporting for cryptocurrency and digital assets.

Form 1099-NEC: In the context of 1099 tax filing, NEC stands for “Nonemployee Compensation” (the first letters of the three words None, Employee and Compensation). Most tax payers recognize NEC as box 7 on Form 1099-MISC. NEC is used to report income paid to independent-contractors / the-self-employed (referred to as 1099 employees for simplification purposes). So, while employers report income that gets paid to employees on Box 1 (Wages, tips, other compensation) of the W2 form, payers report income that gets paid to none-employees on Box 7 (NEC) of the 1099-MISC form. As an individual, if you received form 1099-MISC instead of Form W-2 then the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax.

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 1099-S: A Form 1099-S is a tax document used to ensure that the full amount received for a real estate sale of some kind is accurately reported. A 1099-S can also be used to report income made on a rental property or investment property. For selling real estate, the buyer must complete and file their own 1099-S.

Form 8233: IRS Form 8233 must be completed when a non U.S. citizen is claiming tax treaty exemption from income taxes for income received for services provided as an independent contractor.

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-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.

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.

Liability: In financial accounting, a liability is defined as the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.

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.

Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.

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.

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.

TIN: A Taxpayer Identification Number is an identifying number used for tax purposes in the United States and in other countries under the Common Reporting Standard. In the United States, it is also known as a Tax Identification Number or Federal Taxpayer Identification Number.

Tax Cuts and Jobs Act: The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act, that amended the Internal Revenue Code of 1986.

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

W-8BEN: Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding, is used by a foreign person to establish both foreign status and beneficial ownership, and to claim income tax treaty benefits with respect to income other than compensation for personal services. Give Form W-8 BEN to the withholding agent or payer if you are a foreign person and you are the beneficial owner of an amount subject to withholding. Submit Form W-8 BEN when requested by the withholding agent or payer whether or not you are claiming a reduced rate of, or exemption from, withholding.