Are 1031 Exchanges More Difficult After the New Tax Law Passed?

1031 Exchange TCJA

People have a lot of questions about 1031 exchanges as they relate to the new tax bill that was passed late last year and went into effect the first of this year. In this article, we are going to delve into whether 1031 exchanges are more difficult now that the new tax law has gone into effect.

Exchanging Real Estate

The new tax law preserved 1031 real estate exchanges, meaning they are still a viable option for investors. In that sense, like-kind exchanges of real estate are no more difficult now than they were before the passage of the new tax bill.

Personal Property Exchanges

1031 exchanges of personal property, however, are a different story. The new tax law that went into effect on January 1, 2018 excludes personal property outright from 1031 exchange treatment. So personal property exchanges are a lot more difficult since the new tax law went into effects – that is to say, impossible.

Intermediaries for 1031 Exchanges

If you are considering a like-kind exchange of real estate, your first step should be to contact a qualified intermediary who can get you started with the process. A 1031 intermediary acts as a sort of guide throughout the course of your exchange. They will advise you, prepare your necessary exchange documents, and answer all of your questions that arise. At Commercial Partners Exchange Company, we have been helping investors of all sizes with their real estate exchanges for more than twenty years. Contact our Minnesota qualified intermediaries today to set up a time to chat about your 1031 real estate exchange.

  • 1031 Hotline: If you have questions about 1031 exchanges and the new tax law, feel free to call me at 612-643-1031.

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