Farmers could get a big tax hit when they sell land if House Republicans replace like-kind exchanges with immediate expensing as part of a broader tax reform effort.

The House GOP plan, released last year, doesn't mention the fate of like-kind exchanges in its proposed tax system overhaul, leaving some lobbyists to speculate that the omission was intentional. Tax code Section 1031 like-kind exchanges allow people to defer paying capital gains taxes on the sale of property.

if the proceeds are reinvested in a similar property. It appears there are congressional tax-writers who ''are of the opinion that with lower tax rates and the ability to immediately expense assets, you wouldn't need 1031 anymore,'' said Suzanne Goldstein Baker, executive vice president and general counsel at Investment Property Exchange Services Inc., a company that offers like-kind exchange services. That type of reasoning is based on ''faulty logic,'' she said at a recent American Bar Association tax section meeting.

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