The 1031 Exchange is a vital investment tool for the CRE industry and is an economic driver for the US economy. IPX1031’s own Suzanne Goldstein Baker shares why in this latest piece just published in SIOR (PDF version here):
SIOR: Preserving the 1031 Now and for the Future
The commercial real estate industry breathed a sigh of relief in September when the proposal to implement caps on 1031 like-kind exchanges (LKEs) was excluded from the House Ways and Means Committee’s list of potential tax provisions earmarked to pay for the “Build Back Better” agenda in the multi-trillion-dollar reconciliation bill. Although a final bill had not yet come to a vote at press time, industry insiders were cautiously optimistic that Section 1031 would remain intact—at least for now.
Exhaustive lobbying efforts by the National Association of REALTORS®, the Federation of Exchange Accommodators (FEA) and nearly 40 other organizations, including SIOR, making up the Section 1031 Like-Kind Exchange Coalition appear to have played a major role in preserving Section 1031 as is. The Coalition argued that the elimination of the caps would have had far-reaching negative impacts for not only the CRE industry, but the economy as a whole.
“To offer capping 1031 as a pay-for is a misguided policy, because it’s a misunderstanding of what 1031 actually does,” says Suzanne Baker….
To read the full article in SIOR by Michael Hoban, please visit the following link: PRESERVING THE 1031 NOW AND FOR THE FUTURE or read the PDF of the article here.