The IRS has created a new form 8960 to calculate the Net Investment Income Tax. 1031 LKE gain is not included in the calculation of Net Investment Income tax.
When the new law was enacted it was unclear whether a like kind exchange deferral of gains were going to be included in the Net Investment Income tax trap.
On page 6, of the new IRS 2013 Instructions for IRS Form 8960 the like kind exchange deferral of gain exclusion is confirmed:
” Gains and losses that are not taken into account in computing taxable income are not taken into account in computing net investment income. For example, gain that is not taxable by reason of section 121 (sale of a principal residence) or section 1031 (like-kind exchanges) is not included in net investment income.
Here is the form if you need it: http://www.irs.gov/pub/irs-pdf/f8960.pdf
Have fun completing this new form :-).