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Tax Free Exchange Agreement

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					          Understanding 1031 Tax-Free Exchanges
                                   Online Distance Learning

                       Course Provider: Quality Workshops
                   Mailing Address: 389 Plank Road, Vergennes, VT 05491


                       Contact: Justin Rice – 802-877-2465

                Web Address: http://www.qualityworkshops.com
                 E-mail Address: info@qualityworkshops.com

                         Program Offering Dates: Ongoing

                         Number of Hours of Education: 4 Hours

                                     Support Personal:
                            Walter Rice – Licensed Broker
                       Russell F. Niquette Jr., Esq. – RE Attorney
                          Justin Rice – Content & Marketing

                                    Course Style: Online

                      Course Purpose: Continuing Education


We hereby certify that the information contained in this application is true and accurate
to the best of our knowledge and belief. We have read the course responsibility
checklist and agree to adhere to all requirements.




Walter L. Rice – Principle                              Justin N. Rice – Sales and Marketing



                        389 Plank Road * Vergennes, Vermont 05491 * 802-877-2465               1
                 Understanding 1031 Tax-Free Exchanges
                                        Course Syllabus


I. Program Information

      A. Course Description
            This course features the following elements: capital gains taxes (including forms
            for computing capital gain on a real estate transaction); advantages and
            disadvantages of installment sales; detailed descriptions of exchange (from
            simple trade of properties to a multiparty exchange); a guide to the current 1031
            law and regulations; key forms for executing a 1031 transaction.

      B. Course Outline

            1.     Reading Assignment Topics
            2.     Reading Comprehension Quiz
            3.     Interactive Exercises
            4.     Unit Exam

      C. Learning Objectives

            1. To develop an understanding and using the 1031 tax-free exchange law in
               their real estate business.

            2. To distinguish between long and short term capital gains.

            3. To outline the benefits to the buyer and seller of using an installment sale.


            4. To describe what a tax-free exchange is and situations in which the benefits
               of an exchange would be welcome to a taxpayer.

            5. In summary: to understand what a 1031 exchange is, how it works, and
               what to inform buyers and sellers surrounding these laws.




                      389 Plank Road * Vergennes, Vermont 05491 * 802-877-2465                 2
                        Understanding 1031 Tax-Free Exchanges
                                        Course Syllabus - continued


II. Implementation and Instruction:
   Per REcampus online electronic course


III. Technology & Aids:
   Online accessibility for students with access to the Internet


IV. Textbooks / Workbooks / Publications:

   Inclusive with electronic program; any and all sections may be copied for personal use.

V. Instructor Information: (Content and Support Persons)

   Instructors/Address               Phone/ Resume              Programs                     Qualifications

Justin N. Rice                802-877-2465 - Resume with                     Marketing and Web Master for Quality Workshops
389 Plank Road                application cover page                         since 2004. Managed classroom programs from
Vergennes, Vermont 05491      jrice22@qualityworkshops.com         ALL       2004 to present and has passed the real estate
                                                                             exam, license pending.

Walter L. Rice – Broker       802-877-2465 - Resume with                     Founder, Program Developer, Broker, Principal
389 Plank Road                application cover page                All      and Instructor for Quality Workshops since 1992.
Vergennes, Vermont 05491      walt@qualityworkshops.com

Russel F. Niquette Jr. Esq.   802-655-0780 - Resume with                     Active attorney with vast experience in laws of
PO Box 1 7-9 E. Allen St.     application cover page                         agency, has been an instructor for Quality
                                                                    All
Winooski, VT. 05404           niqlaw@aol.com                                 Workshops since 1992 and believes in education
                                                                             as a means of preventing litigation.

RECampus                      (888) 213-5124                                 24-7 Technical Support and Program Publisher
                                                                   ALL
Dearborn Publishing           REtechsupport@dearborn.com




VI. Program Advertising:

Through partnership with www.REcampus.com plus links from Quality Workshops site at
http://www.qualityworkshops.com/distancelearning/index.htm




                              389 Plank Road * Vergennes, Vermont 05491 * 802-877-2465                                 3
                     Understanding 1031 Tax-Free Exchanges
                                              Course Outline

 I.   General Discussion of Taxes

          A. Income Taxes
                 1. Taxes on Ordinary/Earned Income
                 2. Taxes on Unearned Income – Four Types
                        a. Interest
                        b. Dividends
                        c. Rental
                        d. Capital Gains/Losses
          B. Depreciation
                 1. Depreciation History
                 2. Straight-Line Depreciation
          C. Computing Capital Gain
          D. Recapturing Depreciation

II. Installment Sales
         A. Overview
         B. What is an Installment Sale?
         C. Advantages of an Installment Sale

          D. Disadvantages of Installment Sales
                  1. What if a Buyer Defaults?
                  2. Prepayment
                  3. Bankruptcy

III. The 1031 Tax-Free Exchange

          A.   Overview
          B.   What is a Tax-Free Exchange?
          C.   History/Evolution of the Tax-Free Exchange
          D.   Why Would a Client Want to Exchange?

          E. IRS Classifies Real Estate
                  1. What May Be Exchanged?
                  2. Ineligible Property

          F. Types of Exchanges
                 1. The Simultaneous Exchange
                 2. 100 Percent Tax-Free Exchanges
                 3. The Two Friends Exchange Scenario
                 4. The T.J. Starker Challenges the IRS
                 5. The Reverse Starker Exchange



                            389 Plank Road * Vergennes, Vermont 05491 * 802-877-2465   4
                   Understanding 1031 Tax-Free Exchanges
                                      Course Outline – continued

IV.The Law and the Rules

        A. Overview

        B. Section 1031 of the Internal Revenue Code – The Law

        C. Section    1031 – The Rules
                1.     Identification Rule: Deferred Exchange
                2.     Three-Property, 200 Percent, and 95 Percent Rules
                3.     180-Day Rule
                4.     Proceeds of Sale of the Relinquished Property
                5.     Safe Harbor/Qualified Intermediary

                  6. Additional 1031 Rules
                        a. Interest-Bearing Account
                        b. Cost Basis
                        c. Depreciation
                        d. Properties Eligible for 1031 Exchanges
                        e. Title Rule
                        f. Reducing Future Tax Liability
                        g. Replacement Property Issues
                        h. Personal Property Tax-Free Exchanges

V. The Paperwork

        A.   Overview
        B.   IRS Form 8824: Like-Kind Exchange
        C.   Suggested Language for Standard Real Estate Contracts
        D.   The Exchange Agreement

        E. Exhibits   to the Exchange Agreement – 3 Exhibits:
                1.     Exhibit A
                2.     Exhibit B
                3.     Exhibit C

        F.   Relinquished Property Assignment
        G.   Replacement Property Assignment
        H.    Addendum to Closing Statement
        I.   Computing Capital Gain (Form)

VI. 5 Case Studies




                           389 Plank Road * Vergennes, Vermont 05491 * 802-877-2465   5

				
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