- NY Credits : 2.0
- TX Credits : 2.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 2.0
- IRS Non-Credentialed Return Preparer Credits : Federal Tax Update - 2.0
The general rules of like-kind exchanges are contained in IRC Sec. 1031. These rules provide for the nonrecognition of realized gains and losses on the exchange of property that is considered to be of like kind and must be used in a trade or business or held for investment. Prior to the Tax Cuts and Jobs Act (TCJA) of 2017, eligible Sec. 1031 property included both real property and personal property, including intangible personal property such as patents and other intellectual property; but now, after the TCJA, qualified Sec. 1031 property exchanges only apply to real property. Because of this change, in November 2020 the IRS issued TD 9935, final regulations to define real property for this purpose. This has provided needed clarity to what constitutes real property. The Employee Retention Credit (ERC), also called the Employee Retention Tax Credit (ERTC), has undergone significant changes that are very employer friendly. This credit is beneficial for employers that have or are experiencing COVID-related economic issues. Combined with other available benefits it can be a potential lifeline to employees and employers.
Upon successful completion of this course, the user should be able to:
identify property eligible for IRC Sec. 1031 like-kind exchange;
assess the basic tax rules applicable to the employee retention credit; and
assess the reporting requirements for the ERC.