On December 22, 2017, President Donald Trump signed Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act (TCJA). This law repealed the deferral of gain or loss from exchanges of like-kind personal property held for productive use in a business or for investment under Internal Revenue Code (IRC) section 1031.
On May 16, 2019, Governor Reynolds signed Iowa House File 779, which in part extended the ability to elect deferral of gain or loss on like-kind exchanges of personal property during tax year 2019 to corporations (including S-corporations) and financial institutions. This modifies statutory changes enacted in 2018 which only applied this elective treatment for tax year 2019 to individuals, estates or trusts, or pass-through entities other than corporations or financial institutions. This election has now been extended to all taxpayers for tax year 2019.