tgrebeniuk
Level 1
02-14-2023
12:03 AM
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Asset #1: Under the newly enacted "Tax Cuts and Jobs Act", like kind exchanges completed after December 31, 2017 are limited to exchanges of real property that are not primarily held for resale. A transition rule does provide relief for a transaction if the property given is disposed of, or if the replacement property is received prior to January 1, 2018. Please review the disposition to confirm it qualifies as a like kind exchange under the new law. If not, the disposition should be entered as a normal disposition and not like kind exchange.
My question is: Can I do exchange my old car (2020) to new car (2022) as a like kind exchange under the new law?
My question is: Can I do exchange my old car (2020) to new car (2022) as a like kind exchange under the new law?
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qbteachmt
Level 15
02-14-2023
02:18 PM
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Are you using ProConnect for your personal return? Or TurboTax? Perhaps you are lost on the internet?
"property given is disposed of, or if the replacement property is received prior to January 1, 2018"
But you are not even working on something this old, so for that reason alone, it doesn't apply.
"exchanges of real property"
Which means, not cars.
Or, are you preparing your client's tax return?
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