The IRS has released final regulations (TD 9935) addressing Section 1031 like-kind exchanges. The final regulations adopt, with modifications, proposed regulations (REG-117589-18) issued in June 2020 and implement the TCJA’s limitation of Section 1031 treatment to exchanges of real property held for use in a trade or business or for investment. Under the final regulations, real property generally includes land, anything permanently built on or attached to land, and property characterized as real property under applicable state or local law. In addition, certain intangible property, such as leaseholds and easements, qualifies as real property under IRC Sec. 1031 . The final regulations also provide a rule addressing the receipt of personal property that is incidental to real property received in a like-kind exchange. News Release IR 2020-262.