PART V: Property Transactions (Area 4)

In this section

• Chapter 17: Nontaxable Dispositions
  • §1031 Like-Kind Exchanges (Real Estate, Timelines, Intermediaries)
    A comprehensive guide to §1031 Like-Kind Exchanges, detailing real estate eligibility, strict timelines, and the critical role of qualified intermediaries. Explore step-by-step processes, multi-property examples, best practices, and advanced strategies for CPA exam success.
  • §1033 Involuntary Conversions: Condemnations, Disasters & Replacements
    Explore the intricacies of §1033 involuntary conversions, including eminent domain, condemnation awards, replacement deadlines, partial conversions, and real-world best practices.
  • Boot & Basis Adjustments in Partial Exchanges
    Learn how to handle boot and compute basis adjustments when exchanging property under IRC §1031 with cash or non-like-kind consideration.
• Chapter 18: Character of Gains & Losses
  • §1231, Capital vs. Ordinary & Netting High-Level Overview
    Learn how Section 1231 gains and losses are characterized, the netting process, and how prior net 1231 losses can reclassify gains as ordinary. Understand capital versus ordinary treatment, the five-year lookback rule, and practical strategies for CPA exam success.
  • Depreciation Recapture under §1245 & §1250
    Comprehensive exploration of depreciation recapture rules under Sections 1245 and 1250, including practical scenarios for equipment (personal property), real estate (real property), partial dispositions, and multiple depreciation methods.
  • Installment Sales: Imputed Interest, Dealer Dispositions & Exceptions
    Comprehensive guide to installment sales, covering the gross profit ratio formula, imputed interest rules, dealer disposition exclusions, and significant exceptions, with practical examples and best practices for CPA exam success.
  • Section 1202 (QSBS) Exclusions & Holding Period Requirements
    Explore how to achieve the 100% QSBS Exclusion under IRC Section 1202, including holding period requirements, eligibility thresholds, and state-level nuances.
• Chapter 19: Related Party Issues & Other Complexities
  • Disallowed Losses, Constructive Ownership & Deferred Gains
    Explore how direct or indirect family relationships can disallow immediate losses or gains, along with a practical cheat sheet on ownership attribution for CPA exam success.
  • Wash Sales & Worthless Securities Treatment
    A thorough exploration of wash sale mechanics, the 30-day re-purchase rule, and the distinctions between partial and complete worthlessness in corporate stock and debt for CPA exam success.
  • Abandonments & Partial Dispositions of Real Property
    Explore key tax considerations, examples, and strategies for handling abandonments and partial dispositions of real property—including how to allocate basis between disposed and retained components.
  • State & Local Nuances in Multi-Jurisdictional Dispositions
    Explore how gains from property transactions are taxed across multiple states, including allocation vs. apportionment rules, best practices, and practical case studies to master state and local tax complexities.