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

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 CPEC1031, 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.

• Start Your Exchange: 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

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

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 CPEC1031, 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.

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

Defer the tax. Maximize your gain.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved