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.
