Tax Tip: Like Kind Exchanges
Under the Tax Cuts and Jobs Act (TCJA), like kind exchanges are now only available for exchanges of real property such as buildings or land. Qualifying like kind exchanges of real property used for business or held for investment may allow you to defer taxable gain. Real properties are considered like kind whether improved or unimproved. Properties held for sale do not qualify for like kind exchange treatment. Exchanges of machinery, equipment, and vehicles no longer qualify for like kind exchange treatment and non-recognition of gain.
Consult with your tax professional at Ketel Thorstenson about this or other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own. Ketel Thorstenson CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry. Call us today for guidance on tax planning, tax return preparation, and tax legislation affects or questions.