Will the New Tax Law Lead to an Increase in 1031 Exchanges?

TCJA 1031 Exchange

There have been a lot of questions surrounding the Tax Cuts & Jobs Act over the past several months. We’re going to continue exploring the ramifications of the TCJA on 1031 exchanges. In this article, we are going to talk about whether or not the new tax law will lead to an increase in 1031 exchanges moving forward.

Real Estate Exchanges

The new Tax Cuts & Jobs Act preserved the 1031 exchange as part of the GOPs tax overhaul. That was welcome news to real estate investors who understand the true benefit of the 1031 exchange as an investment tool and economic driver. Since there were no massive changes to 1031 exchanges of real estate with the new law, one might predict that exchanges of real property will remain relatively steady moving forward.

Goodbye Personal Property Exchanges

The opposite is true for 1031 exchanges of personal property. As we’ve mentioned before, personal property exchanges got the axe with the passage of the TCJA. That means personal property 1031 exchanges will not be allowed moving forward (as of January 1, 2018).

1031 Intermediaries

At Commercial Partners Exchange Company, we help clients defer their capital gains tax on the sale of real estate using section 1031 of the Internal Revenue Code. We have been facilitating exchanges across the country for more than twenty years, and have the experience needed to help you through your transaction. We can prepare all of your documents for and advise you of your options every step of the way. Contact us today to speak with one of our skilled 1031 exchange qualified intermediaries.

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

Defer the tax. Maximize your gain.


© 2018 Copyright Jeffrey R. Peterson All Rights Reserved