The Trump administration announced an “outline” of sweeping tax reform on April 26th (just in time for his 100th day). You can look at the document here.
Many of our clients have been asking us how this tax reform could effect Section 1031. Of course it is difficult to second guess this administration or their ability to implement the proposed reforms.
While there is proposed Section 1031 legislation in a couple of the Republican bills, this particular outline does not address either Section 1031 or capital gains rates specifically. It does include the repeal of the 3.8% “Obamacare” tax, but other than that their approach to 1031 is still unclear.
During the past couple of years Edmund & Wheeler, Inc. has joined with the Federation of Exchange Accommodators and other Exchange professionals around the country to ensure that the lawmakers are well informed and educated on just how Section 1031 positively effects the commercial real estate market, and the economy in general.
We have made great strides in getting meetings on the hill and many of our representatives have solid understanding of the importance of this section of the tax code…for everyone.
Our efforts include the maintenance of a great website that contains information regarding Section 1031 tax reform. If you are interested, there is a lot of great information here, and also a link to assist us by bringing your voice to the discussion.