Americans Build Value
with Section 1031 Like-Kind ExchangesTaxpayers at all levels use Section 1031 exchanges to expand businesses and invest for the future, for a positive impact on economic growth for all Americans.
Tax Reform Legislation Preserves Exchanges for Real Estate Assets
The 2017 "Tax Cuts and Jobs Act" preserves Section 1031 for real estate assets and eliminates exchanges for personal property. The law went into effect January 1, 2018.
A Federation of Exchange Accommodators Resource
FEA Perspectives
- Infographic: What Is a Like-Kind Exchange?
- Perspective: TCJA Compliance for QIs
- Infographic: Greater Economic Loss From Repeal Than Tax Cost of Retention
- Perspective: Like-Kind Exchanges Promoting Economic Growth
- Letter: FEA Letter to Treasury Requesting Clarification on Deadline Relief (4/20/2020)
- Whitepaper: The Impact of Section 1031 on the Economy
- Whitepaper: A Legislative History of Section 1031 Like-Kind Exchanges
- Resource: FEA 1031 Client Flyer
Section 1031 Activity
FEA Sends Letter to Biden Campaign regarding the economic impact of Like-Kind Exchanges
FEA Sends Letter to Tax Foundation Regarding Immediate Expensing of Real Property Structures
FEA Sends Letter to National Taxpayers Union Regarding Immediate Expensing of Real Property Structures
FEA Sends Letter to National Economic Council Director Lawrence Kudlow Regarding Immediate Expensing of Real Property Structures.
1031 Repeal Issue
Eliminating Section 1031 like-kind exchanges among sweeping changes to the tax code would disadvantage small and medium-sized businesses, and would negatively impact taxpayers, job growth, and the U.S. economy.
Because Section 1031 complements the House Republican Blueprint proposals and tax reform initiatives, it should be preserved in the tax code.
Study: Economic Impact of Repealing Like-Kind Exchange Rules Study: The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate
Economic Impact of Section 1031
Resources
Proposals
1031 in Industry
History of Section 1031
Press Room
Section 1031 By The Numbers
Like-kind exchanges contribute significant federal tax revenue.
On average, exchanged properties are later sold at a taxable value nearly 19% greater than that of a conventional sale.
From The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate
Professor David C. Ling, University of Florida Professor Milena Petrova, Syracuse University
Repeal of Section 1031 would disadvantage small and medium-sized businesses.
Loss of like-kind exchanges would result in a higher cost of capital, increased holding periods, increased reliance on debt, reduced rate of investment, and economic contraction.Th impact would be felt broadly throughout the economy.
From Economic Impact of Repealing Like-Kind Exchange Rules
Ernst & Young, LLP
Like-kind exchanges provide only a timing benefit
1031 exchange tax benefits are only a temporary deferral. Nearly 34% of exchanges generate some tax payment in the year of exchange. More than 88% of real estate exchange properties are later sold in a conventional sale, at which time tax is paid on the accumulated gain.
From The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate.
Professor David C. Ling, University of Florida
Professor Milena Petrova, Syracuse University