Section 1031 Exchanges for Partnerships and Corporations: Divisions and Conversions to TIC and DST Structures to Protect Tax Deferral
Drop-and-Swap, Tax-Free Corporate Divisions, Partnership Promissory Notes
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers with a practical guide to the workings of Section 1031 like-kind exchanges in the aftermath of the 2017 tax reform legislation and based current best practices. The panel will detail the changes to 1031 treatment, discuss what assets may qualify as "real property" under the new rules, and describe strategies for partnerships and corporations holding real estate assets where a partner is seeking a tax-deferred exit from the partnership.
- Tax reform and the new real property requirement under IRC Section 1031
- Defining real property under Section 1031 and in other contexts
- Framework of 1031 exchanges
- Reverse exchanges
- Forward exchanges
- Overview of Section 1031 partnership asset exchanges
- Drop-and-swap transaction
- Mixing bowl transaction
- Tenants in common and DSTs
- Holding period risks
- Proximate tax-free corporate divisions
The panel will review these and other high priority issues:
- Given the Section 1031 limitations imposed under the 2017 tax law, what kinds of property interests will qualify for Section 1031 treatment?
- What is the role and what are the restrictions of the exchange facilitator?
- Is there a "holding period requirement" under Section 1031?
- Avoiding transaction mistakes that will accelerate recognition
- Distinguishing between "drop-and-swap" and "swap-and-drop"
- Recent decisions reinforcing drop-and-swap treatment
- Availability and application of tax-free corporate restructuring alternatives
Professor Bradley T. (Brad) Borden
Professor of Law
Brooklyn Law School
Professor Borden’s research, scholarship, and teaching focus on taxation of real property transactions and... | Read More
Professor Borden’s research, scholarship, and teaching focus on taxation of real property transactions and flow-through entities (including tax partnerships, REITs, and REMICs). He teaches Federal Income Taxation, Partnership Taxation, Taxation of Real Estate Transactions, and Unincorporated Business Organizations, and he is affiliated with the Dennis J. Block Center for the Study of International Business Law. His work on flow-through and transactional tax theory appears in articles published in law reviews including Baylor Law Review, University of Cincinnati Law Review, Florida Law Review, Georgia Law Review, Houston Law Review, Iowa Law Review, Tax Lawyer, and Virginia Tax Review, among others. His articles also frequently appear in leading national tax journals including Journal of Taxation, Journal of Taxation of Investments, Real Estate Taxation, and Tax Notes.Close
Vice President and Regional Manager
Investment Property Exchange Services
Mr. Brown has overseen the facilitation of more than 5,000 real and personal property exchanges with total values in... | Read More
Mr. Brown has overseen the facilitation of more than 5,000 real and personal property exchanges with total values in excess of $3 billion. He works with the firm's specialty divisions and GC for parking title exchanges and multiple asset exchanges. Mr. Brown has trained over 7,500 attorneys, CPAs, REALTORS® and escrow officers and conducts in-house training on like-kind exchanges, teaches like-kind exchange continuing education courses and is a frequent legal, real estate and tax association speaker.Close
Todd D. Keator
Thompson & Knight
Mr. Keator represents clients in general tax matters including corporation, partnership, and LLC formation and... | Read More
Mr. Keator represents clients in general tax matters including corporation, partnership, and LLC formation and operation; tax-deferred 1031 exchanges; federal and state tax planning and advice; real estate syndications (TICs, REITs, LPs and LLCs); tax structuring for mergers, acquisitions, divisions and financing; private equity transactions; MLP formation and acquisitions; private toll road development; oil and gas tax; and FIRPTA tax. He provides clients with transactional planning and advice, document preparation, and preparation of tax opinions on federal and state tax implications of business transactions.Close