Friday, February 27, 2015

Act Now to Save the 1031 Exchange

What is a 1031 Exchange?     Section 1031 of the Internal Revenue Code permits investors to defer the payment of tax on the gain from the sale of property held for productive use in business, trade or investment, provided that the property is exchanged for a “like kind” asset or assets. The section creates a “safe harbor” that permits the taxpayer to have assurance that the transaction will permit the deferral of the capital gain tax payment.

Concern:  Washington, taxes and the growing deficit are constantly in the news. You’ve also been hearing about tax reform, then specifically 1031 Exchange tax reform and ramifications from us. So as of today, this is where we are at. We need YOUR voice and we need it NOW.
Congress will be introducing tax reform bills in the next few months. Section 1031 Tax-Deferred Exchanges are directly threatened and could very well be repealed or severely limited.
We are working to ensure that a repeal or restriction of Section 1031 is NOT included in any tax reform bill that is introduced. Your assistance in this effort is needed right NOW. We have just a few months to influence this legislation to keep 1031 out of a bill. If our efforts are not successful and 1031 is included in a tax reform bill, we will then be facing an uphill battle over the next 3 years to fight the legislation. Let’s ward it off NOW.
What can you do?
  • The most important thing is to clearly tell your legislators that you want to keep Section 1031. Send a letter to Congress or send ANOTHER letter to Congress if your Senators and Representatives have retired from office. Ensure your current Senators and Representative hear from you. So far over 17,700 letters have been sent! Click here to send a letter via our It takes 30 seconds.
  • Learn more about the issues on our and FEA’s
  • If you have personal connections to your Representative or Senators, we would love to schedule an in-house meeting. Please contact us at
  • Share on social media and encourage your clients, referral sources, advisors, colleagues and friends to #save1031
For more information or help if you are concerned about a 1031 Exchange please call James Callejas CES  Vice President Account Executive IPX  (415) 640-0794

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