Last
week, House Republicans released H.R. 1, their long-awaited 429-page
tax reform proposal. The bill, which is titled the ‘Tax Cuts and Jobs
Act (“TCJA”) leaves 1031 “like-kind” exchanges intact!
The TCJA proposal calls for Section IRC 1031 to apply to only “real property”
(i.e., investment properties). As the IRS Code reads now, investors
can do 1031 exchanges on virtually any type of property (without the
word “real”), which includes rental car fleets, heavy machinery,
airplanes and even works of art. In essence, this change means that
investors would no longer be able to do like-kind exchanges of personal
property.
Other Tax-Reform Considerations for Real Estate Investors...
