While I am not taking a political stance on the new tax law. I would be remiss if I did not determine how it impacts my customers and clients.
As far as I can tell without seeing the IRS documentation Like-Kind Exchanges survived. From what I am reading on the NAR website,
I believe you can still exchange different forms of real estate, i.e.: retail for raw land but you and not exchange other asset classes.
I will write more about the real estate impact as I and other professionals interpret and fully understand it.
- The final bill retains the current Section 1031 Like Kind Exchange rules for real property. It repeals the use of Section 1031 for personal property, such as art work, auto fleets, heavy equipment, etc.
- The exclusion of real estate from the repeal of 1031 like-kind exchanges is a major victory for real estate stakeholders, who had fought hard to preserve the provision for several years, and against long odds.