IPX1031 Insight Blog

1031 Tax Reform Update – August 2015

1031 Tax Reform Update – August 2015

 

The August Recess is here, and with Congress on vacation, things are quieting down in Washington, DC. Although it appears that comprehensive tax reform will be taken up by the next Congress and Administration in 2017, there are still some rumblings about some international tax reform being taken up before year end. Earlier this Spring, there was talk of the possibility of proposals for both international and business tax reform in 2015. Business tax is less likely, but we remain vigilant because anything can happen.

 

We, along with the FEA and a coalition of other industry associations, have continued to press our message about the importance to the US economy of Section 1031 like-kind exchanges. Regardless of when tax reform actually happens, both the Senate Finance Committee and House Ways & Means Committee are working hard THIS YEAR to formulate the platform for comprehensive tax reform. Waiting until 2017 to speak out will be too late; the positions will already have been taken.

 

Our efforts thus far have been met with some measurable success. A number of members of the Congressional tax writing committees are openly and vocally supportive of Section 1031. Even those that are non-committal are not sending anti-1031 messages. More and more Congressmen recognize that 1031 provides just a timing benefit to a broad range of taxpayers in a multitude of industries, and that the transactional activity stimulated by the exchange transactions benefits local and national economies. Nevertheless, the risk always remains that section 1031 could be cherry-picked as a “pay for” for an unrelated expense, such as what happened with a recently filed pension bill.

 

We will keep up the education campaign until there is a clear sign that 1031 is out of the woods, and not in the wood chipper!

Locate a 1031 Expert In Your Area

Recent Posts

Can You Change Spousal Ownership in a 1031 Exchange?

Will Adding/Deleting My Spouse Impact My 1031 Exchange?Generally, no changes should be made to the way title to property is held shortly before or after property is sold/purchased via a 1031 Exchange. For example, if title to an apartment building is held by Lisa and...

1031 Update on Capitol Hill – April 2024

1031 Coalition Letter & DC Fly-In​ April 17, 2024 IPX1031, in conjunction with our industry trade organization the Federation of Exchange Accommodators (FEA), worked with the Real Estate Roundtable to circulate an updated 1031 Coalition letter to leaders of...

The Build to Suit Exchange

The build-to-suit exchange, also referred to as a construction or improvement exchange, gives the Exchanger the opportunity to use all or part of the exchange funds for construction, renovations or new improvements to the Replacement Property.

1031 Update on Capitol Hill – March 2024

Biden Releases FY2025 Budget Proposal March 14, 2024 Consistent with its prior budget proposals, the Biden Administration has proposed capping the gain that can be deferred through a like kind exchange at $500,000 per taxpayer ($1,000,000 for a married couple filing...

Pin It on Pinterest