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Often, when learning of the tax deferral benefits of like-kind exchanges for the first time, sellers are surprised. It seems too good to be true, but it is. Capital gains taxes, recapture of depreciation, state taxes and a health care tax can all be deferred in full. But given the current climate of impending tax reform, is it still advisable?

Baucus and Camp Tax Reform Plans

A number of tax reform plans have been circulating over the past several years. The...

In an op-ed in The Hill, Representative Steve Stivers (R-Ohio) called for the preservation of 1031 like-kind exchanges. Stivers, a member of the Financial Services Committee, called Section 1031 an "important tax benefit," citing the tax provision's value to the community and the economy and stating the importance that it be kept out of the crosshairs of tax reform.

Read "To keep investment dollars flowing, protect this incentive" in The Hill.

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Last week we heard a chorus of voices from around the web urging the preservation of like-kind exchanges in any forthcoming tax reform. Graniterock CFO Steve Snodgrass characterized the unprecedented cross-industry support this way:  "Rarely do the interests of small businesses owners, construction equipment intensive businesses and a broad range of local entrepreneurs agree with almost a century of federal income tax policy — especially when it results in billions of dollars in taxes being paid. But fortunately for the economy, they...

Differences between Real & Personal Property Exchanges

The 1991 Treasury Department regulations set forth detailed guidelines for tax deferred exchanges of real property and personal property. Prior to that time, exchanges could be done but very little guidance was available to make sure they were done correctly. This set of rules and regulations covered like-kind exchanges of both real and personal property. However, these two types of exchange property are not covered the same way. Below, I’ll summarize some of the...