1031 Exchanges Under the New Tax Laws
What affect has the recently passed Tax Cuts and Jobs Act had on 1031 Exchanges?
The recently passed Tax Cuts and Jobs Act has preserved 1031 exchanges for real property but has completely eliminated 1031 exchanges for personal property. Under the new law, real estate exchanges are subject to the same rules and regulations that they were under the old law.
As such, any real property held either as an investment or for use in trade or business is still considered to be of “Like Kind” with any other real property that is also held as an investment or for use in trade or business. Additionally, all significant time frames, including the 45-day identification period and the 180-day exchange period, remain the same under the new law.
Important Tip: For more information on 1031 exchanges please see the Legal Line Question of the Week on 1031 Exchanges.
|Neil B. Garfinkel,
REBNY Broker Counsel
Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP