Tell Congress to Preserve Section 1031

On March 9, 2023, President Biden released the details of his annual budget, and the proposal again includes a $500,000 cap on Section 1031. The same cap was included in last year’s budget proposal.

The Federation of Exchange Accommodators (FEA), the only trade organization that represents 1031 Exchange professionals in the United States, is in regular contact with Congressional Representatives showing them the extraordinary benefits of Section 1031.

As stated by the FEA, “Like-kind exchanges of real estate under section 1031 of the tax code support job growth and investment; the health of U.S. commercial real estate and real estate markets; and the preservation of family-owned farms, ranches, and forestland. Communities and nonprofit organizations use like-kind exchanges to conserve land for the benefit of the public and future generations. Gains reinvested in new property through an exchange create a ladder of economic opportunity for small and minority-owned businesses and entrepreneurs, and generate much-needed tax revenue for States and localities. Also, like-kind exchanges increase the supply of affordable rental housing by filling gaps in housing supply not covered by other incentives. For these reasons, like-kind exchanges will continue to contribute significantly to the Nation’s economic well-being…”

You can join FEA’s efforts by telling Congress to preserve Section 1031. Please visit our website at www.security1stexchange.com and click the TAKE ACTION button at the top of the page. This will take you to a FEA run site where you can send a letter to your members of Congress about the economic importance of Section 1031. It is an easy and important way to make your views known to your elected representatives.

Security 1st Exchange cannot provide tax guidance or advice to any taxpayer. We do offer possible options for you and your tax professional to review to see if it is the best course of action in your specific situation.