Transportation Brief: Like-Kind Exchange
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.
Transportation Brief: The New Tax Law Overview
by Kelli M. Block , Elizabeth M. Bolka , Steven A. PletcherThe Tax Cuts and Jobs Act (the Act) resulted in the most sweeping tax overhaul in decades. This offers overview of the changes in the Act that may have the most significant impact upon the transportation industry. Read Scopelitis' more here.
Transportation Brief: Business Income Tax Rates
by Ronald J. MorelockThe centerpiece of the Act is a permanent reduction to the corporate income tax rate. Read Scopelitis' insight here.
Transportation Brief: Temporary 100% Expensing
by Ronald J. MorelockFor qualified property acquired and placed in service after September 27, 2017, and before 2023, the Act temporarily increases the additional first-year bonus depreciation percentage from 50% to 100% with the percentages phasing down annually through 2026. Read Scopelitis' insight here.
Transportation Brief: The Tax Law and Motor-Carrier-Sponsored Per Diem Plans
by Kelli M. Block , Steven A. PletcherWhile the Act did not change the motor carrier’s side of the balance sheet when it comes to properly structured per diem plans, motor carriers must ensure their per diem plans are carefully structured. Read Scopelitis' insight here.
Transportation Brief: Spotlight on Taxation Practice Area
When federal laws took effect at the beginning of 2018, Scopelitis attorneys acted quickly to assist with federal compliance issues, and with the subsequent issues that continue to arise as states readjust to align with the new tax environment. Each member of Scopelitis’ Taxation Practice offers a unique set of experiences and thought leadership. Read more about them here.
Transportation Brief: For the Record
We are pleased to announce that Jerry Cooper, a Partner in the Firm’s Chicago office, has been reappointed as a member of the Illinois Workers’ Compensation Commission Self-insurance Advisory Board effective through January 1, 2022.
- On the Road
Scopelitis attorneys are often invited to participate in meetings with transportation industry leaders. Learn more about their trips this quarter.
Transportation Industry News & Trends