To get our complete, FREE article
with all the details…
To paraphrase the Bible…
“The IRS giveth and the IRS taketh away.”
What the Tax Cuts and Jobs Act (TCJA) took away was Section 1031 tax-free like-kind exchanges for personal property.
What was given, was a change in the law that limits (so-called) exchanges to real property only.
So what does Section 1031 define as real property?
Well, for starters, Section 1031 uses state and local law definitions and those override federal law as we explain. And frankly, that’s usually good news.
Two important points to keep in mind…
- You can qualify for a Section 1031 exchange as long as no more than 15% of the replacement property’s fair market value consists of personal property.
- You can use cost segregation on real property to speed up your deductions without damaging your Section 1031 tax advantages.
The bottom line?
The whole issue of 1031 like-kind exchanges is worth knowing.
And the good news is that we’ll provide an easy explanation of this whole important subject when you…
CLICK HERE and read the full, complete article…
“IRS Defines Real Property
for Section 1031 Like-Kind Exchanges”