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Tax Cuts and Jobs Act

Provision 13303

Like-Kind Exchanges of Real Property

Overview

Introduction

Under the Tax Cuts and Jobs Act of 2017 (TCJA), Section 13303, Like-Kind Exchanges of Real Property, amends IRC §

1031 to apply only to exchanges of real property either held for productive use in a trade or business or for investment. An

exchange of real property held primarily for sale does not qualify as a like-kind exchange. Beginning after December 31,
2017, exchanges of personal or intangible property will generally no longer qualify for deferral of gain or loss under IRC §

1031. A transition rule in the new law provides that IRC § 1031 applies to a qualifying exchange of personal or intangible
property if the taxpayer disposed of the exchanged property on or before December 31, 2017, or if the taxpayer received

replacement property on or before that date.

Objectives

At the end of this lesson, you will be able to:

• Identify changes to IRC § 1031 and effective dates

• Determine eligible like-kind exchange property

• Identify audit considerations to an IRC § 1031 exchange

73233-102 13303-1 Tax Cuts and Jobs Act