IRC Section 1031 tax deferred exchange course offered

The Illini Valley Association of Realtors, in conjunction with the Illinois Association of Realtors, will sponsor a three-hour educational course on the IRC Section 1031 Tax Deferred Exchange. The course will be held Feb. 24.

Section 1031 of the Internal Revenue Code permits the taxpayer to defer the recognition of gain (and depreciation recapture) upon the disposition of an investment parcel of real property if the taxpayer remains “invested” by acquiring another piece of real property.

This section of the Internal Revenue Code is the exception to the general rule that gain or loss is recognized in the year of sale. Being the exception, the rules and procedures needed to successfully complete the exchange are extensive and must be followed with great care.

This course will review these rules and procedures and will present the methods and situations where Section 1031 Like Kind Exchanges can be used to assist the licensees’ client to better manage their tax liability upon the sale of investment real property, while at the same time enhancing the business opportunities of the licensee.

In addition, this course will explain the alternative structures available for completing an exchange, present diagrams of how and why the exchange actually works, including the structure called a “reverse” exchange.

Instructor for the course will be Roberto Romero-Perez, a licensed attorney in the state of Illinois and the Exchange Counsel in the Midwest Region for Investment Property Exchange Services, Inc.

Specific learning objectives for this course include:

• Understanding how to identify opportunities for exchanges and how exchanges can improve business and service to clients.

• Understanding the way an exchange works and why the rules must be met.

• Learning about some of the issues that can cause problems in exchanges.

• Appreciating how a reverse exchange works; when it can be used; and the issues involved.
Real Estate Brokers and agents attending the course will earn three-hour elective continuing education after successfully passing the course exam.

Registration is required. For more information, contact the Illini Valley Association office at (815) 224-1868 or by e-mail to gpyszka@illinivalleyrealtors.org.