Scopelitis, Garvin, Light, Hanson & Feary, P.C.


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Transportation Brief: Like-Kind Exchange

by Ronald J. Morelock

March 5, 2018

Under the prior tax law, owners of investment and business property could defer paying tax on gains if they exchanged property held as an investment or use in the taxpayer’s trade or business for property of a “like-kind” (1031 exchange). The Act retains like-kind treatment for real estate exchanges.  However, after December 31, 2017, tax deferment for transactions involving personal property is no longer available.  Therefore, motor carriers and others in the transportation industry will no longer be able to defer gains and losses through like-kind exchanges of trucks and other transportation equipment. While this seems detrimental, the impact may be temporarily mitigated by the 100% bonus depreciation allowance.


Scopelitis’ Transportation Brief® is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.


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