Issue Number: 2018-25
Inside This Issue
1. Tax reform redefines like-kind exchanges
The Tax Cuts and Jobs Act (TCJA) modified how the law applies to like-kind exchanges, those which occur when a taxpayer exchanges real property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind.”
The new law applies only to exchanges of real property, and not personal or intangible property.
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2. Rehabilitation Credit also adjusted
The TCJA also affects the Rehabilitation Credit for amounts that some business owners pay or incur for qualified expenditures after December 31, 2017.
The credit is a percentage of expenditures for the rehabilitation of qualifying buildings in the year the property is placed in service. The legislation:
For more information on these and other tax reform topics for small business and self-employed individuals, visit the IRS.gov Tax Reform page.