In recent years, there have been several attempts to cap or get rid of the 1031 exchange. In this article, we are going to talk about recent attempts to cap the 1031 exchange and discuss why it’s important to preserve section 1031 of the Internal Revenue Code.
Attempts to Cap Section 1031
In 2021, there were some proposals in Congress to cap the tax-deferral offered by 1031 exchanges at $500,000. This was viewed by many as a very bad idea. Farmers, agricultural real estate owners, and even nature conservancy lobbyists were all opposed to it because 1031 exchanges help move capital around and free up inventory that otherwise wouldn’t get sold. That’s part of what makes it such a valuable tool in the commercial real estate community. Now 1031 exchanges are back on the chopping block with the President’s newest budget proposal.
The Importance of Protecting Section 1031
It's important that we all remain vigilant of any future attempts to cap or remove section 1031 because it’s a wonderful tool that creates jobs, and increases private infrastructure like warehouses, shopping centers, apartment buildings, and more. All of those benefits from section 1031.
Like-Kind Exchanges in Minnesota
At CPEC1031, LLC we have more than two decades of experience in the 1031 exchange industry facilitating like-kind exchanges of all sorts. Our team of 1031 exchange officers can guide you through the like-kind exchange process and answer any questions you have along the way. Reach out to us today to learn more about our like-kind exchange services and see how we can help with your next 1031 exchange of investment real estate.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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