More Reasons to Leave 1031 Exchanges Out of Any Tax Reform

Summer is over, and Washington is starting to buzz again. Legislators are returning from break, and the atmosphere of change is starting to ramp up. One area that anyone involved in real estate or real estate investment is keeping a close eye on is, of course, tax reform.

And while nobody is certain how broad a brush the administration will use when trying to enact changes to the current code, section #1031 keeps popping up on the radar. But what will the real-world impact be if 1031 exchanges are eliminated or significantly? And what about other proposed changes, like immediate expensing or the elimination of business debt interest deductibility?

One industry expert has painted a potentially bleak picture of what will happen should Congress enact these proposed changes, from the return of “see-through” buildings so popular in the early 80s to a severe reduction in transactions overall. Read on for his full analysis here.

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