Current Issues in 1031 Exchanges

March 26, 2024

Greenberg Glusker Tax and Real Estate Partner, Warren J. "Skip" Kessler, co-presented "Current Issues in 1031 Exchange" for CEB's (Continuing Education of the Bar) CLE Library on March 26, 2024.

Program Description:

Recent changes to the Internal Revenue Code and several significant cases from the California Office of Tax Appeals have affected Section 1031 like-kind exchange transactions. Attorneys Warren J. “Skip” Kessler and Louis S. Weller will discuss the new updates to the laws and how this affects the way California lawyers should advise their clients. Topics covered include the drop and swap structure, the qualified use test and holding period, partnership divisions, inbound and outbound transactions, and more. This course is targeted toward advanced practitioners of tax law and experience with real property exchanges is assumed. Discussion includes:

  • 2017 Tax Cut and Jobs Act changes to Section 1031

  • Definitions of Real Property (Existing, Final, Improvements, Intangibles)

  • Cost segregation and depreciation

  • Partnership divisions

  • Recent cases from the California Office of Tax Appeals

  • California Franchise Tax Board hot button issues and updates

Mr. Kessler is known for his creativity in structuring complex transactions in the real estate space while still “painting within the lines.” Whether a partnership, limited liability company, or corporation, he is able to structure real estate transactions to maximize their tax efficiency for his clients. His capabilities extend to partnership restructuring and M&A transactions. Skip is a national expert when it comes to structuring Section 1031 forward and reverse exchanges as well as structuring dispositions where some partners or members want to exchange separately or where some partners or members want to exchange and others want to cash out. Likewise, his expertise extends to the complex California property tax rules.