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It is no secret that the “Tax Cuts and Jobs Act,” which went into effect January 1st of this year, is the largest tax reform bill in decades. Among the Act’s extensive changes are new rules under Code Section 1031: personal property assets may no longer be exchanged tax-free under Section 1031, and intangibles – patents, FCC licenses, broadband spectrum, and the like – are also fully taxable.
In an article for the newly minted SoCal Real Estate, CGS3 partner and tax chair Phil Jelsma discusss some of the consequences of the new Section 1031 rules – and how bonus depreciation is playing key role in reducing the impact of the new rules within the real estate industry.