Proposed IRS Regulations Define “Real Property” for Section 1031

Jon Christianson and Matthew Carlson of Boutin Jones Inc., together with Louis Weller of Weller Partners, LLP, and Richard Lipton of Baker & McKenzie, LLP, were recently published in the October 2020 issue of the Journal of Taxation, “Proposed Regs Define ‘Real Property’ for Section 1031: IRS Gets It Mostly Right but Insists on Perpetuating Earlier Mistake.” The Tax Cuts and Jobs Act of 2017 changed the landscape for like-kind exchanges under Internal Revenue Code section 1031 by limiting tax deferral to exchanges of real property commencing on and after January 1, 2018. This article explores the new rules defining “real property” set forth in recent proposed Treasury Regulations under Section 1031.

Section 1031 Article (JTAX Oct 2020)