FEA Past President, Mary Cunningham Speaks with REIT.com
Mary Cunningham joined REIT.com for a video interview during REITWise 2015: NAREIT’s Law, Accounting and Finance Conference held in Phoenix.
Cunningham noted that 1031, or like-kind exchanges, allow an investor who sells a property and reinvests the proceeds in a new property within a short period of time, to avoid paying taxes on gains made on the original sale. Like-kind exchanges are used extensively in the real estate sector, she said.
How Do Tax Expenditures Affect the Argument for Repeal of Section 1031?
Earlier in February, the Joint Committee on Taxation announced that like-kind exchanges represent the second largest tax expenditure for corporations for 2014. In early January, the Senate Finance Committee listed like-kind exchanges as the third largest tax expenditure. Many people outside of Capitol Hill view this number in the abstract, but to Members of Congress, tax expenditures raise red flags when legislators are looking to raise revenue and reduce spending. With the release of this number and rank, Section 1031 is an even more attractive target for tax reform. Many lawmakers may not understand that a repeal of Section 1031 would negatively impact GDP and job growth.
Land Investment Expo – January 2015
FEA representative Dave Brown speaks about the impact of a potential repeal of §1031 in agricultural areas.
FEA Government Affairs Committee Member Dave Brown presented and spoke at the Land Investment Expo in Des Moines, Iowa in late January 2015. Donald Trump also spoke, and commented about Section 1031. This video of his Dave Brown’s talk focuses on the issues surrounding a potential repeal of Section 1031 like-kind exchanges, particularly on the impact a repeal would have on agricultural areas in Midwestern states.