CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS
Self-Study

Special Problems in Real Estate Taxation

11 Credits: Taxes

$308.00$348.00

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Special Problems in Real Estate Taxation

Format
Self-Study
Course Level
Overview
CPE Credits

11 Credits: Taxes

Course Description

Before this course, the realm of property investment and ownership might seem laden with unseen challenges and complex tax implications, making it difficult for professionals to navigate confidently. This course acts as a bridge, leading from a general understanding to a nuanced grasp of the field. After completion, participants will move from uncertainty to a robust comprehension of the intricacies of property investment. The course covers a range of critical topics, from the fundamentals of estate building and wealth preservation to the specifics of handling foreign investments and REIT management. It transforms the approach to property investment, arming participants with the expertise to identify and manage the risks associated with various property-related transactions. This transformation is crucial for anyone involved in property investment, offering the tools and insights needed to make informed decisions and achieve success in this challenging yet rewarding field.

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Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Determine what constitutes building an estate, preserving wealth, and distributing assets in the context of financial fundamentals and tax planning elements;
  • Identify types of income, from a financial and tax perspective, to be budgeted into cash so that income-producing assets can be acquired and managed for an effective investment plan;
  • Recognize the types of fringe benefits that employers can provide to employees tax-free;
  • Specify budget rules, ways that cash can be used, guidelines that should be applied when purchasing assets, and money management rules;
  • Recognize the importance of the installment method, select requirements set forth in §453 to determine whether the installment method may be used, and specify terminology associated with the installment method;
  • Determine the impact of §483 (imputed interest rules) and §§1271 through 1274 (original issue discount rules) on installment sales;
  • Specify the rules associated with real property sales and casual sales of personal property, the superstructure of provisions associated with the related party rules of §453, and the exceptions that override basic installment planning;
  • Identify how the contingent payment sales have changed due to the Installment Sales Revision Act of 1980, specify other contingent payment rules, and determine circumstances when dispositions of installment obligations occur;
  • Identify mortgage financing specifying advantages and disadvantages and determine how to amortize mortgage costs;
  • Determine interest using Deputy v. DuPont, 308 U.S. 488, and specify key aspects of personal interest, investment interest, prepaid interest, and points;
  • Recognize interest-free or below-market interest rate loans and how they relate to lenders’ interest income and borrowers’ interest paid under §7872;
  • Identify long-term financing techniques and characteristics of a shared appreciation mortgage and their impact on lenders and borrowers;
  • Specify tests that determine what constitutes interest and their effect on the tax treatments of equity participation, and identify equity participation debt;
  • Identify the elements of the $500,000 home sale exclusion, how to apply it, and specify safe harbor regulations associated with the home sale exclusion;
  • Determine the advantages of §1031 exchanges, their requirements, and the types of true exchanges, and cite the rules of boot and their effect on like-kind exchanges;
  • Recognize the regulations for related party exchanges, foreign real property exchanges, and multiple property exchanges, and specify the former codification systems and how they related to exchanged depreciable tangible properties;
  • Identify the regulations for delayed (deferred) exchanges, specify safe harbors that can be used without risk of actual or constructive receipt, and determine what partnership interests may be exchanged under §1031 and those that may not;
  • Identify condemnations and involuntary conversions under §1033 recognizing their impact on the recognition of gain or loss;
  • Specify variables of a condemnation award including their effect on income and the cost of newly acquired property;
  • Determine severance damages and recognize the complexity of their treatment;
  • Cite the rules on the reporting of payments associated with involuntary conversions, determine gain postponement choices, and specify the related party rule;
  • Identify condemnations and involuntary conversions under §1033 recognizing their impact on the recognition of gain or loss;
  • Specify variables of a condemnation award including their effect on income and the cost of newly acquired property;
  • Determine severance damages and recognize the complexity of their treatment;
  • Cite the rules on the reporting of payments associated with involuntary conversions, determine gain postponement choices, and specify the related party rule;
  • Recognize the requirements of the Foreign Investment in Real Property Tax Act of 1980, and determine a United States real property interest using §897 to determine what dispositions by foreign investors will be taxed;
  • Identify interests in foreign corporations that can be used to avoid taxes on their disposition, and improve reporting of U.S. real property interests by foreign investors;
  • Cite reasons for establishing a REIT that generates annual income that is tax-sheltered and is apt to grow over time, specify advantages that REITs have over limited partnerships and their effect on investments and shareholders, and recognize the development of the self-liquidating REIT; and
  • Identify how management operates a REIT, determine ways that REITs and the fees they pay their advisers can grow, and specify requirements with regards to organization, operation, assets, and income that are set forth in §856 through §858.
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Course Specifics

Course ID
823346053
Revision Date
October 23, 2023
Prerequisites

General understanding of Federal income taxation.

Advanced Preparation

None

Compliance Information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02375-23-S
IRS Federal Tax Law Credits: 11
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-1942
CTEC Federal Tax Law Credits: 11

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at www.ctec.org.

Meet The Experts

Danny Santucci, BA, JD, is a prolific author of tax and financial books and articles. His legal career started with the business and litigation firm of Edwards, Edwards, and Ashton. Later he joined the Century City entertainment firm of Bushkin, Gaims, Gaines, and Jonas working for many well-known celebrities. In 1980, Danny established the law firm of Santucci, Potter, and Leanders in Irvine, California. With increasing lecture and writing commitments, Danny went into sole practice in 1995. His practice emphasizes business taxation, real estate law, and estate planning. Speaking to more than 100 groups nationally each year, he is known …