Tax-deferred real estate exchanges under Section 1031 of the Internal Revenue Code were impacted by last year’s tax legislation. Even though 1031 was preserved for real property, the repeal of personal property changed many things related to real property. The biggest issues involve the following: ineligibility of intangibles for 1031 and immediate expensing (franchise agreements, liquor licenses, distribution rights, etc.); properties that include minimal personal property under the old rules; properties that had a cost segregation study previously; how cost segregation studies could be used to offset boot and/or eliminate the need for improvement exchanges.
Recorded at the Real Estate Institute – December 2019.