Sec. 3133. Repeal of like-kind exchanges
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/bill/113/hr/1/ih/section-3133A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Part III of subchapter O of chapter 1 is amended by striking section 1031 (and by striking the item relating to such section in the table of sections for such part). Section 121(d)(10) is amended by inserting (as in effect before its repeal by the after Tax Reform Act of 2014 ) section 1031 . Section 197(f)(2)(B)(i) is amended by inserting (as in effect before its repeal by the after Tax Reform Act of 2014 ) 1031 . Section 453(f) is amended by striking paragraph (6). Section 470(e)(4) is amended— by striking Sections 1031(a) and in subparagraph
(A)and inserting Section , by striking 1031 or in subparagraph (B), and by striking in the heading thereof and inserting sections 1031 and . section Section 501(c)(12)(C)(v) is amended by striking asset exchange or conversion transaction and inserting specified involuntary conversion . Section 501(c)(12)(G) is amended— by striking asset exchange or conversion transaction and inserting specified involuntary conversion , by striking voluntary exchange or , and by striking 1031 or . Section 704(c) is amended by striking paragraph
(2)and by redesignating paragraph
(3)as paragraph (2). Section 704(c)(2), as so redesignated, is amended by striking or
(2). Section 857(e)(2) is amended by striking subparagraph
(B)and by redesignating subparagraphs
(C)and
(D)as subparagraphs
(B)and (C), respectively. Section 1035 is amended by striking subsection
(d)and inserting the following new subsections: If an exchange would be within the provisions of subsection (a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain, but also of other property or money, then the gain, if any, to the recipient shall be recognized, but in an amount not in excess of the sum of such money and the fair market value of such other property. If an exchange would be within the provisions of subsection (a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain or loss, but also of other property or money, then no loss from the exchange shall be recognized. If property was acquired on an exchange described in this section, section 1036(a), or section 1037(a), then the basis shall be the same as that of the property exchanged, decreased in the amount of any money received by the taxpayer and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized on such exchange. If the property so acquired consisted in part of the type of property permitted by this section, section 1036(a), or section 1037(a), to be received without the recognition of gain or loss, and in part of other property, the basis provided in this subsection shall be allocated between the properties (other than money) received, and for the purpose of the allocation there shall be assigned to such other property an amount equivalent to its fair market value at the date of the exchange. For purposes of this section and section 1036(a), where as part of the consideration to the taxpayer another party to the exchange assumed (as determined under section 357(d)) a liability of the taxpayer, such assumption shall be considered as money received by the taxpayer on the exchange. . Section 1036(c) is amended— in paragraph (1), by striking subsections
(b)and
(c)of section 1031 and inserting subsections
(d)and
(e)of section 1035 , and in paragraph (2), by striking subsection
(d)of section 1031 and inserting subsection
(f)of section 1035 . Section 1037(c) is amended— in paragraph (1), by striking subsections
(b)and
(c)of section 1031 and inserting subsections
(d)and
(e)of section 1035 , and in paragraph (2), by striking subsection
(d)of section 1031 and inserting subsection
(f)of section 1035 . Section 83(g) is amended by striking section 1031 and inserting section 1035 . Section 424(b) is amended by striking section 1031 and inserting section 1035 . Section 424(c)(1)(B) is amended by striking section 1031 and inserting section 1035 . Section 1060(c) is amended by striking the second sentence thereof. Section 1245(b)(4) is amended— by striking and inserting Like kind exchanges; involuntary , and Involuntary by striking 1031 or . Section 1250(d)(4) is amended— by striking and inserting Like kind exchanges; involuntary , Involuntary by striking 1031 or in subparagraph (A), and by striking 1031 or in subparagraph (E). Section 2032A(e)(14)(C) is amended— in clause (i)(I), by inserting (as in effect before its repeal by the after Tax Reform Act of 2014 ) section 1031 , and in clause (ii)(I), by inserting (as so in effect) after section 1031 . Section 4940(c)(4) is amended by striking subparagraph (D). The amendments made by this section shall apply to transfers after December 31, 2014. Notwithstanding paragraph (1), the amendments made by this section shall not apply to any transfer if— such transfer is pursuant to a written binding contract entered into before January 1, 2015, and the exchange of which such transfer is a part is completed before January 1, 2017.