updated May 2020
The Tax Cut and Jobs Act was signed into law on December 22, 2017, and took effect on January 1, 2018. Read about the impact the Tax Cut and Jobs Act had on Sec. 1031 here.
Soon, 1031 exchanges may be eliminated under current tax reform proposals. While recent studies have shown 1031 exchanges benefit taxpayers, businesses and the economy, Representatives on the Ways and Means Committee are considering striking Section 1031 from the tax code.
To be clear, the current tax reform proposal (Blueprint) does not specifically repeal 1031 like-kind exchanges. However, at a Washington DC meeting with the National Association of Realtors (NAR), Ways and Means Chairman Kevin Brady admitted the committee is considering eliminating the provision. Rep. Peter Roskam, Chair of the Tax Policy Subcommittee of the Ways and Means Committee then added that they want to hear from taxpayers about their concerns. “We haven’t made our decisions yet,” said Roskam. “We’re listening.”
Congress is listening. It’s time to be heard. By simply clicking on the below link, in less than two minutes you can send an email to your Representative and Senators voicing your support to keep 1031 tax deferred exchanges in the tax code.