1031 tax exchange at risk - RISE UP- BP nation and be heard !

[Joel Owens]

So there has been rumblings of the current administration trying to find additional tax savings anywhere they can.

A crazy notion has been to look at doing away with the 1031 exchange. This goes against every founding principal this country has.

We need to be profound and stand up and let our legislative bodies of government know that we will not stand for this kind of proposition whatsoever!

There is a site where it auto generates forms to send and has information and how we can fight this atrocity that would hurt investment all across the United States.

If they hear our voice as one loud and clear they will back off.............. : )

FIGHT to keep 1031 Exchange

[Bill Exeter]

Actually, people often make this mistake and assume that the 1031 Exchange is just a tax-deferred transaction for the sale of investment real estate.  It is actually more of an economic stimulus plan to keep people fully invested and to stimulate transaction volume and activity. 

We routinely poll our clients, and what we have found over the years, is that most real estate investors that 1031 Exchange do so in order to put themselves into a better position without paying any taxes.  They also tell us that if they had to pay the taxes they would not have done the transaction (i.e. sold and reinvested in another property), but would have held on to the existing property.  So, if the 1031 Exchange were to be taken away, we have found that 60% to 80% of the investors who have 1031 Exchanged with us would not sell at all.  This means that 60% to 80% of the investment property transactions would disappear, and the corresponding/related real estate commissions, title insurance premiums, escrow fees, lender's fees and interest, appraisal fees, etc., would also go away and they would not pay any taxes on their earnings.  So, eliminating the 1031 Exchange actually turns out to be a income tax revenue loser rather than raiser. 

This threat to 1031 Exchanges comes up every three to five years, and as people weigh in, like those above, and as we explain to members of Congress how it would negatively impact the real estate industry, they always back off.  So, it is important that you let your representatives know how you feel about this so that they will back off again like they always do.