NAR Coalition Letter to Treasury Regarding Section 199A Unadjusted Basis in Like-Kind Exchanges

Issue Date: June 05, 2018


On June 5, 2018, the National Association of REALTORS®, along with 13 other groups and associations, joined in a letter to the U.S. Department of Treasury and the IRS asking for the Treasury Department to interpret “unadjusted basis immediately after acquisition,” for purposes of section 199A, in a manner that would neither inhibit nor impair the economics of a taxpayer’s decision to engage in a section 1031 like-kind exchange. The letter further asks the Treasury Department to interpret “unadjusted basis immediately after acquisition” as the acquisition cost of qualified property, regardless of whether acquired through purchase or like-kind exchange.