On August 11, the U.S. Senate approved an amendment to preserve Section 1031 in its current form. The amendment was offered by Sen. Kennedy (R-LA) as part of the budget resolution Vote-a-Rama, and it passed by unanimous voice vote. While the passage of this amendment to the FY2022 Budget Resolution to retain like-kind exchanges is very encouraging, our work is far from over. Vote-a-Rama votes are NOT binding and do not amend a bill or existing law. It’s still possible that the final budget reconciliation bill could contain limits on Section 1031 Exchanges. Remember the House will weigh in on the final bill. While it’s good news that our voices are being heard, we cannot let up on our advocacy efforts.
Section 1031 will be in the line of fire when Congress turns to the budget reconciliation bill starting in September. We must continue our work nonstop to insure that Section 1031 is preserved.
Continue to contact Congress and urge them to preserve Section 1031 in full. Your letters are making a difference.
IPX1031 Tax Reform resources