Description
Gain an indepth understanding of Section 1031 likekind exchanges and Opportunity Zone investments.This topic will provide an overview of Opportunity Zone investments including the purpose, tax incentives, requirements for deferral along with a review of what type of investments qualify for Opportunity Zone tax treatment. This information will cover a detailed comparison of Section 1031 likekind exchanges and Opportunity Zone investments. The material will also address what three strategies qualify when combining a 1031 exchange with an Opportunity Zone investment along with two approaches that do not work. The topic will also address some advanced 1031 exchange issues including handling partnershipLLC scenarios, related party exchanges along with a review of the 45180 day time deadlines and the Identification Rules and G(6) restrictions on exchange proceeds during a 1031 exchange.
Date: 2020-06-09 Start Time: End Time:
Learning Objectives
Overview of Opportunity Zones
• The Intent of Opportunity Zones
• Opportunity Zones by the Numbers
• Legislative History of Opportunity Zones
• Opportunity Zone Property Values
What Is an Opportunity Zone?
• Qualified Opportunity Zone
• Technical Opportunity Zone Terminology
• Preferred Opportunity Zone Terminology
What Is an Opportunity Zone Fund?
• Three Opportunity Zone Fund Requirements
• Certification of Opportunity Zone Funds
• Opportunity Zone Investments
• What Is Tangible Property?
Four Levels of Opportunity Zone Tax Benefits
• New Opportunity Zone Guidance
• Opportunity Zone Investment Timeline
Legislative History of 1031 Exchanges
1031 Exchange Into Opportunity Zone
• Three Strategies That Qualify
• Two Strategies That Don’t Qualify
Side by Side Comparison of Opportunity Zone to 1031 Exchanges
• Relinquished Property Character and Use
• Replacement Property Character and Use
• Reinvest All Net Equity
• Section 1031: The Exchange Equation and Understanding Cash Boot and Mortgage Boot
• The Exchange Equation: Commercial Property Examples
• Like-Kind Requirement
• Creative Section 1031 Like Kind Property Including Air Rights, Oil/Gas/Mineral Rights, Vacation Homes, Delaware Statutory Trusts (DSTS)
• Qualified Intermediary
• Time Requirement for Reinvestment
• Tax Deferral of Deferred Gain
• Time Restrictions on Holding
• Location
• Identification Requirements Including the Delayed Exchange Identification Rules and 45/180 Day Time Deadlines
• LLC or Partnership Interests
• Section 1031 Partnership/LLC Issues and Solutions
• Partnership Installment Note (PIN)
• Additional Capital Requirements
• Related Parties
• Section 1031 Related Party Rules and Recent Plrs and Tax Court Decisions
• Basis Step-up Reducing Deferred Gain
• Permanent Tax Deferral
Summary
• Final Review of Opportunity Zone vs. 1031 Exchange
Scott R. Saunders-Asset Preservation Inc.
