The topics in this course will explore various income tax planning opportunities available to a client to minimize, eliminate, or defer taxes on a sale of property. Common deferral techniques such as the installment sale and the like-kind exchange will be explored in this course. In addition, we will examine the Section 121 exclusion for the gain on the sale of a principal residence. Also, the rules related to casualty and thefts and involuntary conversions will be covered.

4–1 Analyze a situation to identify an exchange of assets that qualifies for like-kind treatment.
4–2 Analyze a situation to calculate the gain or loss realized, the gain or loss recognized, or the substituted basis for a like-kind exchange.
4–3 Identify the rules related to the Section 121 exclusion.
4–4 Analyze a situation involving a disposition of a personal residence to calculate the gain or loss realized and the gain or loss recognized.
4–5 Identify the rules relating to an installment sale.
4–6 Analyze a situation to calculate the taxable portion of an installment sale.
4–7 Identify rules related to casualty and theft losses.
4–8 Analyze a situation involving a casualty loss to calculate the amount of the deductible loss.
4–9 Identify rules relating to an involuntary conversion.

Author: Michael B. Cates, MS, CRPS®, CFP®

Michael B. Cates, MS, CRPS®, CFP® joined the College in 1986, and is the professor for the Income Tax Planning course of the CFP Certification Professional Education Program. He received his CFP® certification in 1995, and completed the College’s Master of Science degree program in 1997. Mike is also the lead professor for the introductory Income Tax Planning course in the College’s master’s program. In addition to his responsibilities at the College, Mike also maintains a tax planning and preparation firm in Aurora, Colorado. You can reach Mike at mike.cates@cffp.edu.

Complexity Level: Intermediate