I had written an earlier blog on the proposed 1031 Like Kind exchange affects of the new Farm Bill currently under consideration.  There were two issues that I discussed specifically, one was the change to make the exchange of collectibles no longer qualify for tax deferment.  The other, a change to the like-kind definition of certain farmland under subsidy which would severely strict qualifying replacement property to only other subsidized farmland.

The update will bring good news to those taxpayers who exchange collectibles.  The proposed change to their qualifying nature has been dropped from the bill.  So, exchange those collectibles as normal!

As to what may affect many of us even further, there is a continued effort by the Federation of Exchange Accomodators to continue the momentum and have the proposed regulations on subsidized land excluded from the bill as well.  That would be quite the accomplishment.  It seems that this one change in the code would account for some $250 million in newly generated tax income.  The difficulty lies in them finding other tax "adjustments" which would make up for the loss of this potential income should it be excluded from the Farm Bill. 

I will continue to keep you up to date as things happen!