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A Section 1031 like-kind exchange reform resource

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May 5, 2020 By Lynn Harkin

FEA Sends Letter to Biden Campaign regarding the economic impact of Like-Kind Exchanges

On May 5, FEA sent a letter to the Biden for President campaign to advocate for Section 1031 like-kind exchanges and their importance in stimulating the economy.

The FEA is troubled by the Tax Policy Center’s March 5, 2020 analysis of the Biden campaign’s tax proposal, which assumes the proposal “repeals the deferral of capital gains from like-kind exchanges.”

Eliminating or limiting like-kind exchanges in the best of times would have a negative economic impact, increasing the cost of capital, slowing the rate of investment, increasing asset holding periods, and reducing real estate transactional activity. In the face of the current COVID-19 pandemic, recession and economic upheaval, the contractionary impact on the U.S. economy and real estate industry would be severe.  

Click here to read the March 5 letter to the Biden for President campaign.

Filed Under: FEA, FEA §1031 Activity Tagged With: 1031 Exchagne, 2020 Election, Like Kind Exchanges

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Section 1031 Complements Tax Reform, Adds to Growth

IRC Section 1031 like-kind exchanges help a taxpayers at all levels expand their businesses and invest for the future, with a significant positive impact on economic growth. Like-kind exchanges are used widely in the real estate, transportation, agriculture, conservation, equipment leasing, rental vehicle and construction industries. Section 1031 contributes significantly to American jobs, investment, tax revenue, and the health of the U.S. economy.

Section 1031 complements expected tax reform proposals, such as the House Republican Blueprint, and should be retained in its present form. Economic studies found that limiting or repealing like-kind exchanges would result in economic contraction and job loss.

About LKEs

Like-kind exchanges swap property, defer tax, and allow businesses and investors to manage capital. Taxes are eventually paid.

Benefits

Like-kind exchanges promote growth in local communities, federal revenue, and the U.S. economy.

Repeal Issues

Repeal legislation would cause damage to the economy, hurting investors, retirees, renters and other groups.

Economic Studies

Recent analyses of millions of real estate transactions show widespread use of like-kind exchanges by a broad base of taxpayers.

Resources

Find informational handouts and videos in Supporter Resources.
Or, look through our library of official letters and whitepapers.

Take Action

Members of Congress depend on stories from their constituents. Tell your legislators about how like-kind exchanges have worked for you.

Federation of Exchange Accommodators
Lynn Harkin, CAE, Executive Director
Federation of Exchange Accommodators
1255 SW Prairie Trail Parkway
Ankeny, IA 50023
Email: director@1031.org
Phone: 515-244-6515
Fax: 515-334-1174
www.1031.org

Williams & Jensen
701 8th Street, N.W.
Washington, DC 20001
Phone: 202-659-8201
Fax: 202-659-5249
www.williamsandjensen.com

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