Page 354 - Small Business IRS Training Guides

Summary

You are now able to identify changes to IRC § 1031 as a result of the TCJA. For exchanges that begin after December 31,

2017, only exchanges of real property held for investment or for use in a trade or business and certain mutual ditch,
reservoir, or irrigation company stock that is treated as real property will qualify for like-kind exchange treatment.

You are now able to identify which property will qualify for an IRC § 1031 exchange. This includes whether or not real
estate is considered like-kind to other real estate. Any cash or other property received that is not like-kind will trigger the

recognition of gain, but not loss.

The above nonexclusive list of audit considerations will assist you in identifying IRC § 1031 exchanges, the type of
information to request, what questions to ask the taxpayer, and how to determine potential unreported IRC § 1031

exchanges.

73233-102 13303-12 Tax Cuts and Jobs Act