On Demand Webinar

1031 and 1035 Like-Kind Exchanges

Webinar Details $219

  • Rated:
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Steven Mercatante
  • Topic:   Taxation and Accounting
  • Credit:   CPE 2.0, ATATX 1.5
All Access Membership

With constant revisions to information reporting rules and regulations, it is crucial to remain up-to- date with the current laws to avoid those dreaded penalties. This is particularly true when it comes to the intricacies of Internal Revenue Code Section 1031 and 1035 “like-kind” exchanges.

Attend this quick but informative webinar and get tips to remain compliant with the recent changes made to IRS Rules for 1031 and 1035 exchanges.

Learning objectives include: 

  • We will cover all the recent changes and updates made to handling 1031 exchanges
  • Discover best practices for approaching 1031 exchanges
  • Learn how to handle the intricacies of 1035 exchanges
  • Understand what are taxable vs. reportable exchanges and how to avoid negative IRS interactions
  • Get answers to help you understand what is gain and how to defer gains on like-kind exchanges
  • Get tips for handling the treatment of certain partial exchanges
  • Learn about key exceptions to reporting gains on the sale of business or investment property
  • Receive guidance helping you make sure exchanges qualify under section 1031 and 1035 rules
  • Discover what property qualifies for 1031 exchanges and what contracts are eligible for 1035 
  • exchange treatment
  • Learn about time limits for 1031 exchanges and avoid IRS restrictions
  • Understand when a 1035 exchanges is appropriate and when it is not

Level: Intermediate
Format: Live webcast
Instructional Method: Group: Internet-based
NASBA Field of Study: Taxes 
Program Prerequisites: None
Advance Preparation: None

  1. Introduction
  2. What’s New 00:01:12
  3. What’s New  - Upcoming New Changes 00:07:10
  4. What’s New  - The Basics Of E-Filing 00:16:02
  5. The 1099-R – A Brief Overview 00:27:54
  6. Like-Kind Property 00:33:50
  7. Like-Kind Exchanges and IRC Code Section 1031 00:39:41
  8. Like-Kind Exchanges and IRC Code Section 1031 - Who Qualifies/Exchanges 00:42:59
  9. Like-Kind Exchanges and IRC Code Section 1031 - What Property Qualifies for a Like-Kind Exchange? 00:51:28
  10. Like-Kind Exchanges and IRC Code Section 1031 - Reporting Like-Kind Exchanges 00:59:31
  11. Like-Kind Exchanges and IRC Code Section 1031 - The Tax Cuts and Jobs Act 01:05:49
  12. Like-Kind Exchanges and IRC Code Section 1031 - Reminders 01:10:17
  13. IRC Code Section 1035 Exchanges 01:16:56
  14. IRC Code Section 1035 Exchanges - 1099 Reporting Exceptions/Non-Resident Aliens 01:24:38
  15. IRC Code Section 1035 Exchanges  - Annuities and 1035 Exchanges 01:30:31
  16. IRC Code Section 1035 Exchanges  - Transfers and the 1035 Exchange 01:36:45
  17. Protect Yourself - 01:38:25
  18. Attendee Questions 01:39:09
  19. Presentation Closing 01:41:52

  • 1031 Exchanges 00:31:24, 00:39:53, 01:11:58, 01:16:54
  • 1035 Exchanges 01:18:54, 01:22:22
  • Audit 00:02:03
  • Contract 01:33:40
  • Deferred Exchange 00:44:44, 00:46:08, 00:46:21, 00:48:11
  • FIRE - File Information Returns Electronically 00:07:41, 00:11:41, 00:16:13
  • Form 1042-S 01:27:37
  • Form 1099-R 00:07:14, 00:09:07, 01:23:24, 01:25:00
  • Form 8233 01:28:04
  • Form 8824 00:59:37, 00:59:57
  • Form W-8 01:28:32
  • Inflation Reduction Act Of 2022 00:04:29, 01:11:47
  • Like-Kind Exchange 01:10:43, 01:17:03
  • Nonresident Alien (NRA) 01:25:43
  • Partial Exchange 01:33:03
  • Personal Property 00:39:30
  • Personal Property 00:53:36, 00:53:40
  • Real Property 00:39:31, 00:39:34
  • Real Property 01:11:01, 01:12:36
  • Reverse Exchange 00:44:45, 00:46:53, 00:47:15, 00:48:11
  • Tax Gap 00:01:40
  • The Tax Cuts and Jobs Act 01:05:59
  • TIN 01:27:53
  • Transmitter Control Code (TCC) 00:07:58, 00:11:56
  • W-8BEN 01:28:06

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.

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

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.

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-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.

Inflation Reduction Act Of 2022: The Inflation Reduction Act will protect Medicare recipients from catastrophic drug costs by phasing in a cap for out-of-pocket costs and establishing a$35 cap for a month's supply of insulin. And, as an historic win, Medicare will be able to negotiate prices for high-cost drugs for the first time ever.

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.

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.

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.

Tax Gap: The gross tax gap is the difference between true tax liability for a given tax year and the amount that is paid on time. It is comprised of the nonfiling gap, the underreporting gap, and the underpayment (or remittance) gap.

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.


Guest Speaker

  • Steven Mercatante

CPE Credit

Continuing Professional Education

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You must answer all questions during the webinar, view the recording completely and pass the test at the end with 70% correct answers to receive CPE credit.

ATATX Credit

Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in accounting.