New Threats to Section 1031 Like-Kind Exchanges...

[Celia Moore]

In our almost 30 years of time in the 1031 Exchange business, we have had at least a half dozen serious attacks on Section 1031’s existence. Although the 1031 Exchange has been in existence for almost 100 Years, it is once again in jeopardy! There is a serious possibility of a major change in power in the federal government after this Fall's election, and with this change we are hearing proposals that could almost double Capital Gain’s Tax Rates, eliminate the Step-Up in Basis and remove Section 1031 Exchange…

FEA Leadership and GAC are very aware the presumptive Democrat Presidential nominee, Joe Biden, has a tax plan that will eliminate many “tax loopholes.” Section 1031 is targeted to be eliminated as an unnecessary “tax loophole” in the Biden Administration’s tax proposal. If this were to happen, the 1031 exchange and the corresponding industry would cease to exist! As further information becomes available we will be distributing it, but in the meantime please be alert to possible changes and do your best to inform clients and fellow professionals of the possible upcoming changes.

Every few years we hear how an election is potentially the “most important ever” and guess what? This time it may actually be true. This is the time to make a difference!

To read more head online to 1031.org or 1031taxreform.com/FEA

Best of health to all!