LIKE-KIND EXCHANGES OF REAL PROPERTY.

SEC. 13303. LIKE-KIND EXCHANGES OF REAL PROPERTY.(a) In General.—Section 1031(a)(1) is amended by striking “property” each place it appears and inserting “real property”.(b) Conforming Amendments.—(1)(A) Paragraph (2) of section 1031(a) is amended to read as follows:“(2) Exception for real property held for sale.—This subsection shall not apply to any exchange of real property held primarily for sale.”.(B) Section 1031 is amended by striking subsection (i).(2) Section 1031 is amended by striking subsection (e).(3) Section 1031, as amended by paragraph (2), is amended by inserting after subsection (d) the following new subsection:“(e) Application to Certain Partnerships.—For purposes of this section, an interest in a partnership which has in effect a 131 STAT. 2124 valid election under section 761(a) to be excluded from the application of all of subchapter K shall be treated as an interest in each of the assets of such partnership and not as an interest in a partnership.”.(4) Section 1031(h) is amended to read as follows:“(h) Special Rules for Foreign Real Property.—Real property located in the United States and real property located outside the United States are not property of a like kind.”.(5) The heading of section 1031 is amended by striking “property” and inserting “real property”.(6) The table of sections for part III of subchapter O of chapter 1 is amended by striking the item relating to section 1031 and inserting the following new item: “Sec. 1031. Exchange of real property held for productive use or investment.”. (c) Effective Date.—(1) In general.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to exchanges completed after December 31, 2017.(2) Transition rule.—The amendments made by this section shall not apply to any exchange if—(A) the property disposed of by the taxpayer in the exchange is disposed of on or before December 31, 2017, or(B) the property received by the taxpayer in the exchange is received on or before December 31, 2017.