CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

Special Real Estate Tax Problems

Icon_Self-Study
Self-Study
Icon_Level
Overview
Credits
CPE Credits
18 Credits: Taxes

Course Description

This course is designed to survey selected ‘hot’ topics having a direct impact on the property owner and investor. The emphasis is on problem areas where the unwary beginner and expert alike can be trapped. You will learn to identify dangers involving installment sales, imputed interest, exchanging, equity participation, condemnation, passive loss rules, and transactions with foreign investors. Other key topics include mortgage finance, home sales, inventory conversions, and REITs.

Learning Objectives

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

Chapter 1

  • Recognize the basics of 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 investment plan
  • Recognize the types of fringe benefits that employers can provide to employees tax-free, their qualifying requirements, and applicable exceptions
  • Recognize budget rules, ways that cash can be used, guidelines that should be applied when purchasing assets, and money management rules

Chapter 2

  • Recognize terminology associated with using the installment method and the requirements set forth in §453 to determine whether the installment method may be used
  • Recognize terminology, calculation components, and tax concepts associated with §483 (imputed interest rules) and §1271 through §1274 (original issue discount rules)
  • Identify the rules associated with real property sales and casual sales of personality, the provisions associated with the related party rules of §453, and the exceptions that override basic installment planning
  • Identify changes to contingent payment sales due to the Installment Sales Revision Act of 1980, other contingent payment rules, and circumstances when dispositions of installment obligations occur

Chapter 3

  • Identify characteristics, benefits, and terminology associated with mortgage financing including how mortgage costs are treated
  • Recognize the definitions of interest using Deputy v. DuPont, 308 U.S. 488, and key aspects of personal interest, investment interest, prepaid interest, and points
  • Recognize the characteristics and tax treatment of 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, characteristics, and tax treatment of a shared appreciation mortgage and their impact on lenders and borrowers
  • Identify tests that determine what constitutes interest, their effect on the tax treatments of equity participation, and participation debt

Chapter 4

  • Identify the key elements of the $500,000 home sale exclusion, how to apply it, and applicable safe harbor regulations
  • Recognize the advantages and requirements of exchanges, types of true exchanges under §1031, and the rules of boot including their effect on like-kind exchanges
  • Recognize the regulations for related party exchanges, foreign real property exchanges and personal and multiple property exchanges, applicable codification systems, and how they relate to exchanged depreciable tangible properties
  • Identify the regulations for delayed (deferred) exchanges, safe harbors that can be used without risk of actual or constructive receipt, and what partnership interests may or may not be exchanged under §1031

Chapter 5

  • Recognize the characteristics and requirements of condemnations and involuntary conversions under §1033 and 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
  • Recognize the concept and complex tax treatment of severance damages
  • Identify the rules on the reporting of payments associated with involuntary conversions, gain postponement choices, and the related party rule

Chapter 6

  • Identify types of income and the ‘buckets’ of income and loss under §469 that can control what a taxpayer can deduct against other income
  • Recognize the suspension of disallowed losses, how it relates to passive losses, and the special rules for transfers that are not deemed to be fully taxable dispositions
  • Identify taxpayers subject to §469, the purpose of §469, and whether clients fall into one of the categories of taxpayers who are subject to the passive loss rules
  • Recognize material participation terminology and requirements, ways that a taxpayer can avoid having an activity become subject to the passive loss limits, what is affected by §469, and the limitations of credits and losses from passive activities
  • Recognize an activity and passive activity loss, the treatment of carryover losses and the allocation process, the characterization of gain from the exchange, sale, or other disposition of an interest in property used in an activity or held through a partnership or S corporation, and the special rule for rental real estate
  • Identify the two types of recharacterization rules under the regulations, passive activity credits, the benefits and uses of the passive activity audit guide, and the impact of the at-risk limit rules

Chapter 7

  • Recognize the requirements of the Foreign Investment in Real Property Tax Act of 1980 and the definition of 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

Chapter 8

  • Specify reasons for establishing a REIT, advantages that REITs have over limited partnerships and their effect on investments and shareholders, and the development of the self-liquidating REIT
  • Identify how management operates a REIT, ways that REITs and the fees they pay their advisers can grow, and the requirements with regards to organization, operation, assets, and income that are set forth in §856 through §858

Course Specifics

Course ID
8130285
Revision Date
October 24, 2019
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-00547-14-S
IRS Federal Tax Law Credits: 18
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-0569
CTEC Federal Tax Law Credits: 18

Course Instructor

Danny Santucci Headshot
Danny Santucci, JD

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 …

Danny Santucci, JD Read More »

Special Real Estate Tax Problems

Expert Instructors
Format
CPE CREDITS
18 Credits: Taxes

$396.00$436.00

Clear
Icon_Self-Study
Self-Study
Icon_Level
Overview
Credits
CPE Credits
18 Credits: Taxes

Course Description

This course is designed to survey selected ‘hot’ topics having a direct impact on the property owner and investor. The emphasis is on problem areas where the unwary beginner and expert alike can be trapped. You will learn to identify dangers involving installment sales, imputed interest, exchanging, equity participation, condemnation, passive loss rules, and transactions with foreign investors. Other key topics include mortgage finance, home sales, inventory conversions, and REITs.

Learning Objectives

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

Chapter 1

  • Recognize the basics of 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 investment plan
  • Recognize the types of fringe benefits that employers can provide to employees tax-free, their qualifying requirements, and applicable exceptions
  • Recognize budget rules, ways that cash can be used, guidelines that should be applied when purchasing assets, and money management rules

Chapter 2

  • Recognize terminology associated with using the installment method and the requirements set forth in §453 to determine whether the installment method may be used
  • Recognize terminology, calculation components, and tax concepts associated with §483 (imputed interest rules) and §1271 through §1274 (original issue discount rules)
  • Identify the rules associated with real property sales and casual sales of personality, the provisions associated with the related party rules of §453, and the exceptions that override basic installment planning
  • Identify changes to contingent payment sales due to the Installment Sales Revision Act of 1980, other contingent payment rules, and circumstances when dispositions of installment obligations occur

Chapter 3

  • Identify characteristics, benefits, and terminology associated with mortgage financing including how mortgage costs are treated
  • Recognize the definitions of interest using Deputy v. DuPont, 308 U.S. 488, and key aspects of personal interest, investment interest, prepaid interest, and points
  • Recognize the characteristics and tax treatment of 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, characteristics, and tax treatment of a shared appreciation mortgage and their impact on lenders and borrowers
  • Identify tests that determine what constitutes interest, their effect on the tax treatments of equity participation, and participation debt

Chapter 4

  • Identify the key elements of the $500,000 home sale exclusion, how to apply it, and applicable safe harbor regulations
  • Recognize the advantages and requirements of exchanges, types of true exchanges under §1031, and the rules of boot including their effect on like-kind exchanges
  • Recognize the regulations for related party exchanges, foreign real property exchanges and personal and multiple property exchanges, applicable codification systems, and how they relate to exchanged depreciable tangible properties
  • Identify the regulations for delayed (deferred) exchanges, safe harbors that can be used without risk of actual or constructive receipt, and what partnership interests may or may not be exchanged under §1031

Chapter 5

  • Recognize the characteristics and requirements of condemnations and involuntary conversions under §1033 and 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
  • Recognize the concept and complex tax treatment of severance damages
  • Identify the rules on the reporting of payments associated with involuntary conversions, gain postponement choices, and the related party rule

Chapter 6

  • Identify types of income and the ‘buckets’ of income and loss under §469 that can control what a taxpayer can deduct against other income
  • Recognize the suspension of disallowed losses, how it relates to passive losses, and the special rules for transfers that are not deemed to be fully taxable dispositions
  • Identify taxpayers subject to §469, the purpose of §469, and whether clients fall into one of the categories of taxpayers who are subject to the passive loss rules
  • Recognize material participation terminology and requirements, ways that a taxpayer can avoid having an activity become subject to the passive loss limits, what is affected by §469, and the limitations of credits and losses from passive activities
  • Recognize an activity and passive activity loss, the treatment of carryover losses and the allocation process, the characterization of gain from the exchange, sale, or other disposition of an interest in property used in an activity or held through a partnership or S corporation, and the special rule for rental real estate
  • Identify the two types of recharacterization rules under the regulations, passive activity credits, the benefits and uses of the passive activity audit guide, and the impact of the at-risk limit rules

Chapter 7

  • Recognize the requirements of the Foreign Investment in Real Property Tax Act of 1980 and the definition of 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

Chapter 8

  • Specify reasons for establishing a REIT, advantages that REITs have over limited partnerships and their effect on investments and shareholders, and the development of the self-liquidating REIT
  • Identify how management operates a REIT, ways that REITs and the fees they pay their advisers can grow, and the requirements with regards to organization, operation, assets, and income that are set forth in §856 through §858

Course Specifics

Course ID
8130285
Revision Date
October 24, 2019
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-00547-14-S
IRS Federal Tax Law Credits: 18
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-0569
CTEC Federal Tax Law Credits: 18

Course Instructor

Danny Santucci Headshot
Danny Santucci, JD

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 …

Danny Santucci, JD Read More »

Special Real Estate Tax Problems

Expert Instructors
Format
CPE CREDITS
18 Credits: Taxes

$396.00$436.00

Clear