1031 End of Year Reminder
To keep your holiday season merry and bright, here is a key 1031 reminder:
Tax Reform Update
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 45% or more of the current real estate transactions occurring nationally are utilizing a 1031 Exchange, 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.
Watch IPX1031®’s Western EVP, Jennifer Keen's snapshot of key 1031 tax reform issues.
For more information, please visit www.ipx1031.com/taxreform