GOOD NEWS! HOUSE WAYS AND MEANS COMMITTEE MARK-UP RELEASED

[Bill Exeter]

GOOD NEWS! HOUSE WAYS AND MEANS COMMITTEE MARK-UP has been released. At this point, here is what we know: 

• 1031 Exchanges were NOT included in the mark-up, so no changes to 1031 Exchanges.
• The step-up in cost basis was NOT included in the mark-up, so no elimination of the step-up in cost basis.
• Capital gain taxes for the 20% bracket will be increased to 25% (good news for us, because people that used to just pay the tax will now want to do a 1031 Exchange).

There is always a chance the above could change, so stay tuned. 

[Bill Exeter]

Hi @Dave Spooner, 

We have been very active in educating members of Congress and the administration about the benefits of 1031 Exchanges and the unintended consequences of eliminating or restricting the use of 1031 Exchanges.  We were 90% sure that the initiative was not going to be included in the House Ways and Means Mark-up based upon conversations that we and others have had.  While it is  still possible that it could be resurrected during the negotiations for this Bill, it is very very unlikely.  Having said that, these threats to 1031 Exchanges come up everything 3 to 5 years and we must remain vigilant in our efforts to "save the 1031 Exchange."  We expect these to fizzle at this point.