A Reminder About 1031 Exchange Limitations

1031 Exchange Limitations

Earlier this week, the IRS issued a reminder to taxpayers about the limits of 1031 exchanges.  It seems that some may still be unaware of the recent changes to 1031 exchanges brought on by the Tax Cuts and Jobs Act. In this article, we are going to offer a quick reminder about the recent 1031 exchange limitations.

A Quick 1031 Refresher Course

There was a big change in the 1031 exchange industry in 2018. The Tax Cuts & Jobs Act, which passed in late 2017 and went into effect in early 2018, restricted 1031 exchanges to like-kind real property only. Prior to the TCJA, items of personal property could be exchanged under section 1031, as well as real estate. This is now a bygone era.

If you have been intending to conduct a 1031 exchange of personal property – think again. Such an exchange will not be recognized by the IRS and you will end up recognizing your capital gains on the sale.

That being said, 1031 exchanges of real property are still a viable and advantageous option for taxpayers. If you’re considering selling investment real estate, you can still avail yourself of the tax-saving benefits of a 1031 exchange.

CPEC 1031

At Commercial Partners Exchange Company, our qualified intermediaries have more than two decades of experience working with clients throughout the country on their real estate exchanges under section 1031 of the Internal Revenue Code. We can help you through every stage of the exchange process – answering your questions and advising you throughout the proceedings. Contact us today to set up a time to chat with our 1031 exchange professionals at our downtown Minneapolis office.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.


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