Meetings with Congress
Capitol Hill Update, April 2025
Although our mission to educate members of Congress and their staff on the significant benefits of 1031 Exchanges will never end, it was apparent in the meetings that all our past efforts and advocacy have been effective.
We will continue to fight for Section 1031, but we need your assistance. Elected officials listen more closely to their constituents! Below is something you can do to help with the Section 1031 advocacy efforts:
Talk with your contacts about preserving Section 1031
Below are some of the comments the FEA shared with members of Congress about Section 1031. Please feel free to use them in your conversations with colleagues, friends, and representatives.
- Section 1031 is an important tool used by business owners, farmers and ranchers, middle-class taxpayers, and others to transition into locations that more efficiently meet their needs, instead of being tax-locked into obsolete assets.
- 1031 Exchanges have been utilized to revitalize entire neighborhoods, generate significant job growth all resulting in widespread community improvement. Section 1031 is an effective tool to encourage this activity while avoiding market disruptions. Allowing businesses to continue to utilize Section 1031 prevents many assets from becoming shuttered blight.
- Recent economic impact studies have concluded that Like-Kind Exchanges are a powerful stimulant of transactional activity that, in addition to the benefits described above, generates over $14 billion in federal taxes annually, plus an additional $5 billion in state and local taxes annually. The studies found that exchanging buyers make real estate investments that are substantially greater than non-exchanging buyers, resulting in improved communities in which to live, work and play. These studies quantified that limiting or repealing Section 1031 would cause significant economic contraction and job loss.
- Most importantly, under Section 1031, taxes are merely deferred, not eliminated!
Thank you for your help in IPX1031’s advocacy efforts. We will keep you updated with additional information as it becomes available.
