amp;nbsp; Commercial Like-kind exchanges
The final tax law bill retained Section 31 like-kind exchanges
for real property including land, buildings and improvements.
Along with carried interest, 1031 like-kind exchanges
have often been mentioned as possible targets of tax reform.
The association co-sponsored The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges
in Real Estate, which was presented on Capitol Hill in Washington, D.
The new California Form FTB 3840, California Like-kind Exchanges
, is available on the FTB's website to allow for public comment.
To avoid actual or constructive receipt, in most deferred like-kind exchanges
, the taxpayer hires a qualified intermediary (QI), an independent party that holds the sale proceeds until replacement property is acquired.
can take many forms in addition to the one in the previous example.
gold for gold, or silver for silver), the transaction will generally receive nonrecognition treatment, subject to the rules for like-kind exchanges
in IRC Section 1031 (see Q 7526).
Unfortunately, the rules for like-kind exchanges
do not apply to exchanges of the following types of property:
have become increasingly common.
One of the more well-known non-recognition provisions of the tax law is for like-kind exchanges
168(i)-6 provide rules and examples to help harmonize depreciation treatment under the modified accelerated cost recovery system (MACRS) of the exchanged basis of relinquished and replacement property in like-kind exchanges
and involuntary conversions under IRC [section][section] 1031 and 1033.
Although anyone who owns investment or business property is eligible for this tax deferral benefit, Renee Collins formerly of RKC Tax and Financial Services, points out that "The IRS has a strict definition for like-kind exchanges
that must be adhered to.