1031 exchanges going away?

[Brandon Gentile]

I heard some rumblings out of NAR (National Association of Realtors) that the industry was looking to do away with 1031 exchanges. I didn't know if that was in Michigan or nationally but has anyone else heard of that or have any thoughts? I feel like that would be terrible for us investors....

[Kyle J.]

I've never heard that and don't think that's likely to happen.  (Even if it were to ever happen, you couldn't just "do away" with them in Michigan since it's based on a provision in the federal tax code.)

From everything I've heard, NAR actually supports 1031 exchanges (more business for them). In fact, here's a recent article where NAR is quoted as saying "like-kind exchange transactions are fundamental to the real estate investment sector, and repealing the tax provision would have negative effects across real estate markets and the industry".

I'd say don't worry about them going away any time soon.