Capitol Hill Update, July 2025
1031 Exchanges Remain Intact as Trump Signs “One Big Beautiful Bill” Into Law
IPX1031 Advocacy Helps Secure Major Win for Real Estate Investors
Our team held over 20 one-on-one meetings with key members of the House Ways and Means and Senate Finance Committees and, on April 9, 2025, traveled to Washington, D.C. with our trade association, the Federation of Exchange Accommodators (FEA), participating in more than 90 meetings with Congressional members and staff. The result? Section 1031 was excluded entirely from both the House and Senate versions of the “Big Beautiful Bill” — a clear outcome of persistent advocacy and collaboration.
On July 4, 2025, President Donald J. Trump signed the “One Big Beautiful Bill” into law — a broad tax package aimed at stimulating investment. For real estate investors, the biggest win is what the bill didn’t change: Section 1031 Like-Kind Exchanges remain fully intact. Investors can continue deferring capital gains taxes by reinvesting in qualifying real estate — preserving a key tool for building wealth, improving communities, and supporting economic growth.
While this is a major victory, our work continues. We encourage you to keep the conversation going and share the value of 1031 Exchanges. Below are key talking points from the FEA to help guide those conversations:
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 conducted in 2021 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 standing with IPX1031 in our efforts to protect and preserve Section 1031. We will continue to advocate for its benefits and keep you informed as new developments arise.
