The United States Treasury Department has put out Revenue Proposal 2017 which proposes to eliminate art as a class of goods people can use for 1031 exchanges starting December 31, 2016. “Whether it becomes law is of course is open to debate, but the art 1031 is exposed, and with no group lobbying for its retention, it could become part of a either a Democratic or Republican budget and used to offset more popular or broad based spending increases.” Now is the time for people wanting to use an art 1031 exchange to hurry up before the rules change. Internal Revenue Service (IRS) regulations impose limits on the number of exchanges that people can undertake in a year. The U.S. Treasury Department proposals can be read here.
See Joshua Kaufman, Proposed Legislation Puts the Future of 1031 Art Transactions at Risk, Venable LLP, February 18, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
