NEW YORK CITY—With tax returns due on Tuesday, April 17, real estate investors are carefully reviewing specific provisions of the new tax law. The RealShare Net Lease Conference in the Park Lane Hotel on April 4-5 in New York City included a session “Breathe Easy: The 1031 Update – Post Tax Reform.”

During the tax reform process, investors were wary that the law would eliminate or whittle down Section 1031 like-kind exchanges to raise revenue to offset other tax reductions. The law ultimately preserved 1031 exchanges for real estate but eliminated them for personal property. Moderator Mary Cunningham, president of Chicago Deferred Exchange Company asked what this meant for investors.

Panelist Marc Wieder, partner and co-practice leader of the real estate industry group at Anchin, Block & Anchin, said prior to the law, with 1031 exchanges when working with a building, FF&E (furniture, fixtures and equipment) were often included in the asset. Property owners sold it all then gave the money to the QI (Qualified Intermediary, an entity that facilitates Section 1031 tax-deferred exchanges).