Desert Valley Times
June 24, 2015
A Desert Valley Times article reviews the effort to keep Section 1031 in place. Dwight Kay, founder and CEO of Kay Properties and Investments, says it is important to keep the Section in place because a repeal would be “detrimental to investors, the real estate market, and the economy.” The article describes Section 1031 as a little-known but significant tax-planning tool for investors, gives several reasons for its preservation, and briefly describes how a Section 1031 exchange works.
The article details several challenges faced by the preservation effort, including the revenue projection by the Joint Committee on Taxation on a repeal. However, Kay suggests several reasons why keeping Section 1031 is good for investors and the overall economy. He states that Section 1031 encourages businesses to expand, moves dollars within the U.S. economy and creates jobs. Repeal would inhibit reinvestment by small and medium-sized businesses and investors, and cause a decline in real estate values as investors move to more liquid assets.
The author concludes the article by reminding readers that Section 1031 is available to and used by taxpayers of all sizes.
Read the entire article at thespectrum.com.