Sec. 2.5. (a) This section applies to a like kind exchange of depreciable personal property for which:
(1) the exchange would have been eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code in effect on January 1, 2017;
(2) the exchange is not eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code currently in effect; and
(3) the taxpayer made an election to take deductions under Section 179 or Section 168(k) of the Internal Revenue Code with regard to the acquired property in the year that the property was placed into service.
(b) In determining the cost of the depreciable personal property described in subsection (a) that is used to determine the value of the depreciable personal property subject to an assessment, the acquisition cost of the depreciable personal property acquired in the like kind exchange shall be reported as:
(1) the net book value of the depreciable personal property traded in; plus
(2) any cash boot added to the exchange;
as if the exchange was eligible for nonrecognition of gain or loss under Section 1031 of the Internal Revenue Code in effect on January 1, 2017.
As added by P.L.257-2019, SEC.12.