Tax News Update    Email this document    Print this document  

November 23, 2020
2020-2760

IRS issues final like-kind exchange regulations reflecting TCJA changes

The IRS has announced (IR-2020-262) new final regulations (TD 9935) under IRC Section 1031. The final rules amend current regulations to address the definition of real property for purposes of IRC Section 1031 in light of changes under the Tax Cuts and Jobs Act (TCJA) that limit, as of January 1, 2018, like-kind exchange treatment to exchanges of real property held for use in a trade or business or for investment. (For a summary of the proposed regulations, see Tax Alert 2020-1573.) A Tax Alert will be forthcoming.

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement