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Error Like -Kind exchange

tgrebeniuk
Level 1
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?
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2 Comments 2
abctax55
Level 15

Despite folks living in their cars these days, that doesn't convert a car to real property. So, no you can't.

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qbteachmt
Level 15

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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