November 29, 2018

Like-kind Exchange

The IRS is reminding taxpayers that like-kind exchange tax treatment is now generally limited to exchanges of real property. Effective 1/1/18, exchanges of personal or intangible property such as machinery, equipment, vehicles, artwork, collectibles, and intellectual property generally no longer qualify for nonrecognition of gain as like-kind exchanges. Like-kind exchange treatment now applies only to exchanges of real property held for use in a trade or business or for investment. Real property includes land and generally anything built on or attached to it.