IPX1031 Insight Blog

Why 1031 Repeal Affects You – 1031 Impact & Importance

1031 Has Now Been Targeted for Repeal

 

On August 19, 2024, the Democratic National Committee released its 2024 Platform. It calls for the full repeal of 1031 Exchanges incorrectly referring to them as a tax loophole for the rich.

Targeting 1031 Exchanges for repeal has been a bipartisan strategy over the years. At the same time we do have many supporters in both parties. Even with that, in 2017 the Republicans had 1031 on their list for repeal.

1031 repeal alert Tax reform updates September 2024 graphic

 

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1031 Impact & Importance

1031 Exchanges allow a seller to defer paying capital gains taxes by reinvesting in new properties of equal or greater value.

20%-40% of all commercial sales and numerous residential transactions involve a 1031 Exchange, particularly for residential rentals, multifamily, and agricultural land sales.

Repeal of Section 1031 would affect us all. Real estate sales would come to a standstill, devastating the US economy and reducing transaction volume.


We will continue to closely monitor the situation to keep you informed as well as continue our efforts to educate Congress.


 

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