Report from IPX1031 President John Wunderlich Just Returning from DC
Comprehensive Tax Reform Bill Expected This Week
FY2018 Budget Resolution passes, paves way for major Republican effort
Note: Since discussions regarding tax reform began, IPX1031 President John Wunderlich and members of the 1031 trade association (FEA) have been involved in over 300 meetings on Capitol Hill to educate Congress about the many economic benefits of 1031 exchanges. Last week John and the association were in DC. Here is John’s update.
The timing for tax reform has accelerated with the passage of the Senate budget by the House today. With the reconciliation process a reality, a tax reform bill can pass with no Democratic votes. House Ways and Means is on a turbo-charged timetable and we believe the tax reform bill will be introduced next week.
The latest news on timing is:
- November 1: Text of tax reform bill will be released by the House Ways & Means Committee.
- Week of November 6: Mark up in the House Ways & Means Committee.
- Week of November 13: House Floor consideration of the tax reform bill. / Mark up (tentative) in the Senate Finance Committee.
- November 17 – December 24: Passage of tax reform bill targeted for as early as the Thanksgiving recess (November 17) or as late as Christmas Eve.
- The goal of the White House and Republican leadership is to have a tax reform bill signed into law within the next 3 to 8 weeks. That’s no more than 56 days from today.
Where are we on §1031? We have made considerable progress in the House. We now have several strong supporters who are making a difference. However, in the Senate we came away from our meetings with the feeling that they look at §1031 as something they can go after. We need to protect our progress in the House and we need to move the Senate. We have this week to make a difference.
The authors of the tax reform bill are guarding details closely. Because of the lack of any credible detail, we must assume that §1031 is still on the chopping block.
DO IT NOW: Contact your Senators and Representative today to let them know how important Section 1031 exchanges are to you, your business, and your community. Send or resend a letter through www.ipx1031.com/action. You can customize the letter or send it as is in less than 60 seconds.
Share this with your clients and referral sources and ask them to do the same.
