Congress is preparing to make changes to the taxation of “like-kind” exchanges that may effect you and your clients
The US House and Senate have included in their tax bills revisions to the treatment of like-kind exchanges that will affect some coin and currency dealers and their clients. Dealers and clients who engage in such exchanges will face significant consequences if Congress adopts these revisions to Section 1031 of the US tax code. ICTA recommends you assess the effects of these revisions if you engage in like-kind exchanges.
The consequences of the proposed changes in Sec. 1031 are complex and ICTA is not qualified to provide tax advice. But we urge you to determine the effects of the House and Senate tax bills. If your interests are affected, call your Representative and Senators as soon as possible, as congressional leaders are moving these bills at unprecedented speed. Reference Subtitle D, Sec. 3303 of the House tax bill. This section replaces the word “property” in current law with “real property,” the effect of which is to allow only real estate in like-kind exchanges in Sec. 1031 of IRS regulations.