November 22, 2021
The House of Representatives passed a $1.7 trillion spending bill last Friday, November 19th. At this point Section 1031 remains intact and unchanged. The Administration’s proposal to cap Section 1031 at $500K per taxpayer was not included as a “Pay For” in the Build Back Better bill as passed by the House. This was not by accident. A lot of hard work was done by our industry association, the Federation of Exchange Accommodators, and a coalition of real estate associations, in addition to the many letters sent by individual 1031 supporters and calls, meetings and articles published in support of Section 1031. Thank you to all for all of the collective efforts that achieved this good result.
Action now turns to the Senate, where this bill will undoubtedly undergo some changes. At that point it will go back to the House for another vote. We will continue to monitor the situation closely until the process is complete and the final version is passed. Only then will we know for sure that Section 1031 is truly safe.
IPX1031 Tax Reform resources