At a high level, pooling doesn’t sound like a bad idea; there are six buckets and an inclusive structure for like-kind exchanges without the requirements that burden today’s taxpayer. But closer analysis of the draft bill yields some concerns. Tracking detailed information at an asset-level is standard operating procedure and not considered an extra burden by the majority of Accruit’s clients who made investments years ago into systems that provide the asset-level tracking required in many types of businesses (leasing, for instance) and by most states.
The following, provided by PwC, presents a detailed overview of the discussion draft. I will keep you apprised of ongoing discussion with our 1031 Coalition partners, Senate Finance Committee members, and others as I coordinate further commenting on the draft proposal.
Senate Finance Committee examines business tax reform issues; Ranking Member Wyden releases draft cost recovery tax reform bill