The midterm elections are now complete and the Senate, House of Representatives and White House are preparing their agendas. Since tax reform has been a popular election topic, it is probable that there will be tax reform bills introduced in February. All the recent tax reform proposals have included some limitation or elimination of 1031 Exchanges, so it is likely to be incorporated in these future tax reform bills.
Please remember that a 1031 Exchange defers the tax ordinarily due upon the sale of investment property; it is not a tax deduction. Because Exchangers must reinvest in more investment property within a certain time frame, it then becomes an economic stimulant which boosts our economy. The taxes are eventually paid once the investment property is sold and no reinvestment is made. Breaking this cycle would be detrimental to taxpayers and businesses, small and large, nationwide. Finally, when realizing that in some markets, Section 1031 is involved in as much as 30-45% of commercial and other investment real estate transactions, it becomes startlingly clear of the damaging impact its repeal would have.
IPX1031® will continue with our advocacy campaign of sending letters to Congress saying NO to 1031 Exchange tax reform. To date, almost 16,000 letters have been sent to Congress via IPX’s website www.ipx1031.com/action. IPX1031® will also focus on Congressional communications with face-to-face meetings to educate key representatives in both Congressional districts and in Washington D.C.
Please join us in our effort to dissuade the inclusion of 1031 repeal or limitation in any bill introduced.
Naughty or nice? Watch what Southern California IPX1031® Vice President, Stephen Decker, asks Santa for this year.
For more information, please visit www.ipx1031.com/taxreform
• Watch John Wunderlich’s update and hear about his recent meeting with Paul Ryan.
• Watch Dan Wagner’s, VP of Government Relations at The Inland Real Estate Group, video about “What Congress Should Know About Real Estate and Our Economy” at NAR’s Annual Conference.
• Read a recent letter from multiple associations to President Obama.
• Read Jim Miller’s, IPX1031® Western Operations Exchange Counsel, recently published article in the Lands of America magazine, Facts & Figures: Section 1031 Is On The Tax Reform Table, What Does That Mean And What Can We Do About It?
• CALL TO ACTION – Tax Reform Proposals ELIMINATE SECTION 1031. CLICK HERE to Contact your Congressmen.