December 14, 2021
Santa’s sack is chock full of important legislation to be delivered before the holiday season concludes. The debt limit must be raised and the National Defense Authorization Act must be passed. And while the ETA for Santa’s sleigh is projecting delivery of the Build Back Better bill (BBB) before Christmas, there are still a lot of headwinds, and some reindeer with minds of their own that could delay delivery beyond year end.
We are pleased to report that neither the House-passed version of the BBB nor Senator Wyden’s tax related text of the Senate version includes any limitations to IRC Section 1031. It has taken a great deal of work by members of IPX1031, our industry association, the Federation of Exchange Accommodators, and all of our 1031 coalition partners in the real estate industry to get to this position of relative safety. Although 1031 is not on today’s menu, and we’d like to think that our work is done, that could change if the BBB slips into 1Q2022, and with it, more changes to provisions and Pay-Fors. We continue to monitor progress and remain prepared to respond to any changes that could impact IRC Section 1031.
IPX1031 Tax Reform resources