Act Now: Defend 1031 Like-Kind Exchanges
Help defend 1031 through NAR’s new 1031 Like-Kind Exchange Member Stories Portal, where members can share how they’ve used 1031 to bring economic investment to their community.
The Biden administration has proposed eliminating Section 1031 like-kind exchanges (1031s) under the American Families Plan, arguing that the tax policy only benefits the wealthiest of Americans. However, the National Association of REALTORS® (NAR) continues to stand firm in their opposition to the proposal and advocates for 1031s to remain legally intact.
The fundamental issue behind 1031s is simple: the exchange of one investment or business-use property for another of like-kind should not alter the economic position of the participating taxpayer. As a result, such an exchange should not warrant an imposed income tax on the swapped like-kind property. Under the current 1031 rules, real estate investors/practitioners are permitted to defer taxes, so long as the taxpayer satisfies numerous requirements and consummates both a sale and purchase within 180 days.
To defend the tax policy, NAR has launched the 1031 Like-Kind Exchange Member Stories Portal, where members can tell how they used 1031 to bring economic investment to their community. Any member(s) who shares their story can help humanize this critical issue and shine a light on the need for this policy to remain intact.
Now more than ever, it is important that we educate our lawmakers and their staff on the vitality of 1031s. From affordable housing providers, to small businesses, to farmers, the 1031 has been utilized by numerous Americans since its creation almost a century ago. Eliminating 1031 could hurt the commercial real estate sector as well as investment in communities throughout the nation.
For more information on the 1031 like-kind exchange, please visit the IRS website linked here.
For more insight into 1031s as they relate to the real estate industry, please visit NAR’s advocacy page or view NAR’s policy summary.
For all other inquiries, please reach out to DAAR’s Government Affairs Director.
June 15, 2021