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.