Proposed regs on property for like-kind exchanges

摘要

The Tax Cuts and Jobs Act restricted the tax benefits of like-kind exchanges under Code Sec. 1031 to real property, eliminating personal property from eligibility. Prior to the change, the focus under Code Sec. 1031 was what property was considered like-kind to other property. With the TCJA change, the focus has now shifted to what is real property. In June 2020, the Treasury Department and the IRS issued proposed regulations seeking to define real property for like-kind exchange purposes. Many of the current regulations discussing what types of real property are like-kind to other types of real property remain valid under the new proposed regulations.