We at IPX1031® have been busy furthering the Section 1031 education and awareness campaign. Since the beginning of the year, our President, John Wunderlich, and our General Counsel, Suzanne Goldstein Baker, along with colleagues in the FEA (our industry association) have had almost 80 meetings with Senators, Congressmen, Congresswomen, and their staffers.
Watch IPX1031®’s mid year review video on what’s been happening with education and awareness to save 1031.
What we’ve learned from these meetings is that comprehensive tax reform is increasingly being targeted for 2017. The hot issue right now is corporate integration, to eliminate the double taxation effect for corporate profits. Nevertheless, the chairs of both tax writing committees, (Senate Finance Committee and House Ways & Means Committee), along with Rep. Paul Ryan, Speaker of the House, remain committed to a rewrite of the tax code. It is clear from the comments received in our meetings that a blueprint for a tax reform bill in 2017 is being crafted now, so NOW is when our voices need to be heard.
John and Suzanne, along with a FEA colleague, also presented the 1031 issue to a consortium of conservative organizations convened by the Americans for Tax Reform organization. The trio stressed that Section 1031 builds America by creating jobs through stimulation of robust transactional activity.
The FEA joined with 26 other industry associations in sending a letter to Senator Orrin Hatch, Chairman, and Senator Wyden, Ranking Member, of the Senate Finance Committee, describing the economic benefits of Section 1031. The diversity of the coalition signers, including the Real Estate Roundtable, the American Farm Bureau Federation, equipment and vehicle leasing and rental associations, dairy associations and other real estate organizations, reinforces just how important Section 1031 is to a broad cross-section of Americans. Read the LKE Coalition letter sent in May to the Senate Finance Committee here.
Sen. Ron Wyden recently released a discussion draft of a Cost Recovery Reform and Simplification bill (not yet filed). This draft legislation proposes to change depreciation rules for personal property assets by replacing more than a hundred different depreciation schedules with just six depreciation pools. The good news is that the Wyden pooling proposal, unlike the former proposal from his predecessor, then-Senator Baucus, does not seek to eliminate Section 1031. However, it not clear just exactly how the pooling mechanism will affect current like-kind exchange practice. Sen. Wyden is currently seeking feedback from interested parties.
Please make your voice heard by sending a letter to your legislators, letting them know how important like-kind exchanges are to you, your business, and your clients. Please click here for a sample letter that you can personalize and send in just a couple of minutes.
RECENT 1031 NEWS
Letter on 1031 LKE Agricultural Benefits Sent to House Ways & Means Committee (June 1, 2016) A letter in support of section 1031 LKE was sent to House Ways & Means Committee Chairman Kevin Brady by two members of the House Agriculture Committee, Reps Gibbs (R-OH) and Rouzer (R-NC) and was joined by 17 other Congressmen & Congresswomen. Read the letter here.
GlobeSt.com Interviews Joe Cosenza on 1031 Repeal Issue. Could Proposed 1031 Changes Be Good For Joe Cosenza? (May 31, 2016)
Watch GlobeSt.com’s exclusive video interview. (Registration required.)