IRS Proposes Rule on Like-Kind Exchanges

Multifamily
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Codes and Standards

Oct 23, 2025

NAHB Requests Member Feedback on ICC Review of International Residential Code

The International Code Council (ICC) has announced it will begin a holistic review of the International Residential Code (IRC), the national model construction code for one- and two-family dwellings that ICC updates every three years.

IBS | Leading Suppliers Council

Oct 23, 2025

IBS 2026 Exhibit Home Aims for Groundbreaking Energy-Efficiency Rating

For anyone curious about how far today’s innovative building products can take a home’s performance, The New American Home 2026 is the must-see showcase at the upcoming Builders’ Show, taking place Feb. 17–19.

View all

Latest Economic News

Economics

Oct 20, 2025

Non-Conventional Financing for New Home Sales Loses Ground in 2024

Nationwide, the share of non-conventional financing for new home sales accounted for 31% of the market per NAHB analysis of the 2024 Census Bureau Survey of Construction (SOC) data. This is 1.7 percentage point lower than the 2023 share of 32.4%. As in previous years, conventional financing dominated the market at 69.3% of sales, higher than the 2023 share of 67.6%.

Economics

Oct 17, 2025

Better Growth, Larger Deficits: CBO Fiscal Outlook

The Congressional Budget Office (CBO) is a key nonpartisan score keeper that measures the effects of policy changes by the Federal Government. With several policy changes since January of this year, including the One Big Beautiful Bill Act (OBBBA), stricter immigration, and higher tariffs, the CBO updated its economic projections through 2028.

Economics

Oct 16, 2025

Amid Market Challenges, Builder Expectations Rise in October

Even as builders continue to grapple with market and macroeconomic uncertainty, sentiment levels posted a solid gain in October as future sales expectations surpassed the 50-point breakeven mark for the first time since last January.