1031 exchanges are a wonderful tax-saving strategy and many investors want to know what the future holds for section 1031. In this article, we are going to talk about the history of 1031 exchanges and how they might change in the future.
A Brief History of 1031 Exchanges
Many people don’t realize that 1031 exchanges have been around for a long time. In some form or another, 1031 exchanges have existed as a part of the United States tax code for more that a century. Section 1031 has also gone through many changes over its lifetime. The most recent major change came with the 2018 Tax Cuts and Jobs Act, which restricted 1031 exchanges to real estate and excluded personal property exchanges. Section 1031 is an ever evolving provision.
The Future is Uncertain
The truth is that nobody has a crystal ball – the future of the 1031 exchange is uncertain. 1031 exchanges are often under attack by both political parties for various reasons. That being said, section 1031 has been a part of the US tax code in one form or another for over 100 years. While 1031 exchanges may not look identical in the years and decades to come, their many benefits for investors and the economy at large make for great reasons to keep them around.
Defer Your Capital Gains Taxes with a 1031 Exchange
Defer your capital gains taxes with a 1031 exchange of real estate held for investment or business use. Section 1031 of the Internal Revenue Code is available for any US taxpayer to utilize as a tool for tax deferral. Tax-savvy investors have been 1031 exchanging property in one form or another for over 100 years. Contact the qualified intermediaries at CPEC1031, LLC to learn about the like-kind exchange process and see if your property is a good candidate for 1031 tax deferral. You can find us at our main office in downtown Minneapolis.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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