November 23, 2020
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.