IRS to Study Like-Kind Exchanges

The IRS will study reporting and compliance issues regarding like-kind exchanges of property under IRC section 1031. The move comes in response to a September report by the Treasury Inspector General for Tax Administration that faulted the IRS for what it called little oversight of the method for deferring capital gains tax. Amounts so deferred more than tripled in six years, to $73.6 billion in 2004, TIGTA said. The report also called for more consistent guidance on filing requirements for Form 8824, Like-Kind Exchanges , and clarification of rules and regulations regarding exchanges of second and vacation homes (see “ Home Free,” JofA, Jan. 07, page 40).