Sam Zell discussed with Fox Business host Maria Bartiromo the importance of retaining 1031 exchanges for its impact on the commercial real estate industry. He mentioned that legislators could be considering changing the rule during a discussion of the potential impact of tax reform on the economy.
Zell, the chairman and founder of Equity Group Investments founder and a well-known figure in the commercial real estate industry made the point that 1031 exchanges are a major rule that incentivizes taxpayers to sell. Section 1031 exchanges affect a large portion of commercial real estate decisions, he said. Without 1031 exchanges, Zell said, “I’d never sell” low-basis properties.