1031 Exchanges of Real Property Remain Intact under the New Tax Plan

Posted on January 17, 2018

The Tax Cuts and Jobs Act that President Trump signed into law effective Jan. 1, 2018, secured the rights of real estate owners and investors to conduct tax-deferred exchanges of properly structured “like-kind” real property. The law however, did eliminate the availability of tax-deferred exchanges of personal property, such as art work, coins and other collectibles.

Real estate 1031 exchanges are an important part of the U.S. economy, especially for small-to- medium-sized businesses and real estate investors. In some U.S. markets, 1031 exchanges touch at least 45 percent of real estate investment transactions.

Real estate industry trade groups, including the National Association of Realtors and National Association of Real Estate Investment Trusts, lobbied Congressional Republicans to retain Section 1031 in its tax reform plan, because it had been rumored to be under fire.

Other changes to the tax plan will impact homeowners but not commercial real estate owners.

The team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.