The American Society of Cost Segregation Professionals (ASCSP) wishes to commend the Treasury Department (Treasury) and the Internal Revenue Service (IRS) for the thoughtful effort clearly reflected in Proposed Regulations 1.1031(a)-3 (REG-117589-18) defining real property for purposes of Internal Revenue Code Section 1031. ASCSP was established to serve as the voice of cost segregation professionals and to address the need for education, credentials, technical standards and a code of ethics within the industry. From this perspective, ASCSP offers the following comments and suggestions concerning these Proposed Regulations.
On June 11, 2020, the IRS and Treasury released highly anticipated proposed regulations on Sec. 1031 (REG-117589-18) that provided a definition specific to Sec. 1031, including a list of examples of real property and a framework for analyzing anything not listed. The final regulations (T.D. 9935) were published Dec. 2, 2020, and mostly adopted the proposed regulations but with a few important deviations. 041b061a72