IRS Proposes Rule on Like-Kind Exchanges
The Internal Revenue Service has released a draft regulation to define a like-kind property that is held for investment, trade or business purposes under Section 1031 of the tax code (governing like-kind exchanges). The IRS will accept comments through Aug. 11.
A like-kind exchange under U.S. tax law is a tax-deferred transaction that allows for the disposal of an asset and the acquisition of another similar asset without generating tax liability from the sale of the disposed asset.
Under the Tax Cuts and Jobs Act, Section 1031 was limited to real property. Existing statute and regulations do not define real property for purposes of Section 1031. Determination of real property is instead accomplished using definitions obtained elsewhere in the tax code.
In addition to defining real property, the regulation seeks to clarify how taxpayers should treat certain receipts of personal property that is incidental to the real property received.
NAHB will continue to analyze the proposed regulations and plans to submit comments after a careful review.
Latest from NAHBNow
Leading Suppliers Council
Nov 18, 2025
Storm-Ready Style: What to Know About Impact-Rated Doors in Coastal and Tornado-Prone AreasRising demand for impact-rated doors in storm-prone areas means customers increasingly expect protection without compromise — doors that meet stringent codes while enhancing style, comfort, and long-term value.
Economics
Nov 18, 2025
Builder Sentiment Relatively Flat in November as Market Headwinds PersistBuilder confidence in the market for newly built single-family homes rose one point to 38 in November, according to the NAHB/Wells Fargo Housing Market Index (HMI) released today.
Latest Economic News
Economics
Nov 18, 2025
Location, Location, Location: How Place and Neighborhood Shape Home ValuesThe value of a single-family home depends not only on its physical features but also on its location and neighborhood context.
Economics
Nov 18, 2025
Builder Sentiment Relatively Flat in November as Market Headwinds PersistMarket uncertainty exacerbated by the government shutdown along with economic uncertainty stemming from tariffs and rising construction costs kept builder confidence firmly in negative territory in November.
Economics
Nov 17, 2025
August Private Residential Construction Spending Edges HigherPrivate residential construction spending inched up 0.8% in August, continuing steady growth since June 2025. This modest increase was primarily driven by more spending on multifamily construction and home improvements.