This program is eligible for 3 hours of CLE credit in 60-minute states. In 50-minute states, this program is eligible for 3.6 hours of CLE credit. Credit hours are estimated and are subject to each state’s approval and credit rounding rules.
Overview
Join us as we explore some of the more complex and strategic applications of Section 1031 of the Internal Revenue Code, a powerful tool for sellers of real estate seeking to defer capital gains taxes when selling properties. Under this provision, a taxpayer can defer paying taxes on the gain from the sale of real property, provided that the proceeds are reinvested into other property of like kind as required by the Code and regulations. This strategy is commonly known as a "like-kind exchange" or 1031 exchange and can significantly enhance a taxpayer’s ability to conserve funds, restructure their property portfolio, and grow their wealth over time. By postponing the tax liability, investors are able to reinvest the full amount of the sale proceeds into a new property, thereby leveraging their gains to acquire more valuable or strategically positioned real estate without the immediate tax burden.
In this session, we will address some of the more advanced 1031 structures including (i) strategies for partnerships where some partners may wish to cash out or exchange into separate replacement properties, (ii) exchanges involving seller financing or pre-exchange and post-exchange refinancing and (iii) so-called “reverse exchanges,” where the taxpayer buys first and sells second . Whether you're a seasoned real estate professional or a newcomer to the world of tax deferral strategies, understanding the ins and outs of Section 1031 can be a game changer.
Recorded in May 2025.
Faculty
David Shechtman, Esq.
Mr. Shechtman is Shareholder in Flaster Greenberg PC’s Corporate and Business Department and a member of the firm’s Tax Group. His practice includes a wide range of federal, state and local tax matters, including tax aspects of mergers, acquisition and recapitalizations; S corporations and partnerships; and administrative appeals of federal, state and local tax controversies. He has developed a national practice in the area of like-kind exchanges of real estate, representing major oil and gas and telecommunication companies, as well as major REITs and other real estate owners and investors, in structuring exchange transactions. Mr. Shechtman also represents a number of bank-affiliated and independent exchange intermediaries and has prepared standard exchange documentation which is widely used in the industry. In addition, he has served as an expert witness in a number of cases involving like-kind exchange issues. Since 2018, Mr. Shechtman has worked with clients to defer taxes through investments in Qualified Opportunity Funds, and worked on the ABA Tax Section task force which commented on the proposed Treasury Regulations for QOF investments. An active member of the Section of Taxation of the American Bar Association, Mr. Shechtman served as Chair of the Committee on Sales, Exchanges and Basis from 2005 to 2007. Mr. Shechtman is a former officer of the Philadelphia Bar Association’s Tax Section and was selected as 2015 Philadelphia “Tax Lawyer of the Year” by the Best Lawyers publication. He is a fellow of the American College of Tax Counsel and an Adjunct Professor of Tax Law at Temple University Beasley School of Law. Presentations and Publications. Mr. Shechtman frequently speaks and writes on the subject of like-kind exchanges and other tax topics and has been quoted on tax issues in the Wall Street Journal, the New York Times and other business publications. He has spoken at all 24 Annual Advanced National Conferences on Like-Kind Exchanges, co-sponsored by the Center for Professional Seminars and Wells Fargo Bank, and has prepared dozens of outlines on exchange tax issues for those programs. Mr. Shechtman also regularly moderates and participates on panels at meetings of the ABA Tax Section and various tax programs sponsored by the Pennsylvania Bar Institute, American Law Institute and the NYU and USC Federal Tax Institutes. His recent presentations include Section 1031 Current Developments (ABA Tax Section Meeting, May 2019); Taxes in Real Estate Transactions: Exchanges, Involuntary Conversions and Installment Sales (PBI, February 2014); Tax Aspects of Litigation Settlements (PBI, December 2013); Ponzi Scheme Tax Issues (ABA Tax Section Meeting, January 2013); Are Real Estate Gains Back in Vogue: Section 1031 Hot Topics (South Federal Tax Institute, October 2012) and Partnership Issues in Like-Kind Exchanges (ALI-ABA Partnerships, LLC and LLPs, January 2012). Mr. Shechtman’s recent publications include: IRS Finalizes 1031 Real Property Regs, The Practical Tax Lawyer (May 2021); The IRS Has Been “Berry, Berry Good” to Baseball Team Owners in Taxing Player Contract Trades, Journal of Taxation of Investments (Summer 2019); Like-Kind Exchanges and C Corporations (NYU 74th Institute on Federal Taxation, 2015); Will Series LLCs Master the Domain of Reverse Exchanges? Journal of Taxation of Real Estate (3rd Quarter 2011); Someone Made Off With My Money, Now What? Journal of Taxation of Investments (Summer 2009); and Like-Kind Exchanges and Bankrupt Intermediaries, Tax Notes (July 6, 2009). He also is the author of the chapters on federal and Pennsylvania taxes in the West publication Pennsylvania Forms and Commentary – Business Organizations and served as editor for Checkpoint Catalyst, Topic 114, Taxable Stock Acquisitions. A 1974 graduate of Swarthmore College, Mr. Shechtman received his bachelor’s degree, with high honors, in economics. An active participant in undergraduate activities, he served as an editor of the campus newspaper and played on the varsity basketball team. Mr. Shechtman earned his J.D. degree from Cornell University Law School in 1977. While in law school, he was a moot court finalist and won the Evidence Prize for the best evidence exam.
Matthew J. Meltzer, Esq.
Matt is a Shareholder in Flaster Greenberg PC’s Corporate and Business Department and a member of the firm’s Tax Group. He regularly advises clients in transactional tax matters, including like kind exchanges of real estate under Section 1031 of the Internal Revenue Code, mergers and acquisitions, business reorganizations (both in anticipation of a strategic transaction and otherwise), and joint ventures. He has also represented clients in tax controversy matters and has assisted clients in negotiating voluntary disclosure arrangements with state revenue authorities. Matt also advises clients on the income tax treatment of structured litigation settlements, qualified settlement funds, and attorney fee arrangements. Matt frequently speaks on topics relating to Section 1031 exchanges, the tax treatment of litigation settlements, and the IRS’s recent second look at the tax treatment of certain deferred compensation arrangements for contingent fee attorneys.
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