IPX1031 Insight Blog

Tax Notes: Basis Limit in Passthrough Law Shouldn’t Hinder Like-Kind Exchanges

Basis Limit in Passthrough Law Shouldn’t Hinder Like-Kind Exchanges
by Eric Yauch, Tax Notes, July 23, 2018, p. 560.

Regulators shouldn’t interpret a passthrough deduction provision to create a double burden on taxpayers that engage in like-kind exchanges, such as real estate professionals.

The 20 percent passthrough deduction in section 199A was intended to give passthrough entities tax parity with corporations, so that passthrough partners don’t face up to 37 percent in individual income taxes, according to Suzanne Baker of Investment Property Exchange Services.   Read article in entirety here.

Locate a 1031 Expert In Your Area

Recent Posts

Tax Straddling – 1031 Exchanges at the End of the Year

updated November 2023 Tax Straddling - Pay Taxes in 2024 or 2025? When a 1031 Exchange is opened in the latter part of the year, a seasonal treat worth mentioning is “tax-straddling.” If that exchange is successfully completed, those taxpayers defer taxes to receive...

1031 Cybercrime

Nationwide, fraud and cybercrime continue to escalate. In our recent research, Americans shared that 1 in 3 have been victims of identity theft and 55% have been victims of scams. Unfortunately, incidents are trending upward, which is impacting commercial real estate...

Pin It on Pinterest