Section 1031 Real Property Definition
26 CFR § 1.1031(a)-3
Added by IRS/Treasury final regulations (TD 9935, "Statutory Limitations on Like-Kind Exchanges," published in the Federal Register December 2, 2020) implementing the 2017 Tax Cuts and Jobs Act limitation of IRC Section 1031 like-kind exchange treatment to real property. Section 1.1031(a)-3 defines "real property" for like-kind exchange purposes (land, improvements, unsevered natural products, water/air space, and certain intangible interests). The companion regulation also adds a rule (at § 1.1031(k)-1(g)(7)(iii)) addressing personal property incidental to real property received in an otherwise qualifying exchange. The regulations are effective and apply to exchanges beginning after December 2, 2020.
Who must comply
Other IRS regulations
Deferred Like-Kind Exchange Rules
26 CFR § 1.1031(k)-1
Opportunity Zone Final Regulations
26 CFR §§ 1.1400Z2(a)-1 through 1.1400Z2(f)-1
IRC § 1031 Like-Kind Exchanges
26 U.S.C. § 1031
IRC § 1250 Depreciation Recapture
26 U.S.C. § 1250
IRC § 1400Z-2 Opportunity Zones
26 U.S.C. § 1400Z-2
FIRPTA Withholding
26 U.S.C. § 1445; 26 CFR § 1.1445-1
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