Grover Norquist is bullish on the prospects for passage of tax reform legislation this year. However, the founder and president of Americans for Tax Reform is sounding an alarm on the potential repeal of one of the most valuable tools available to those who invest in land and real estate: the I.R.C. Section 1031 like-kind exchange. Norquist tells The Land Report that “1031 is endangered.”
First enacted in 1921, the like-kind exchange has served as one of the single greatest wealth-building tools available to real estate investors by providing a simple tax-deferral mechanism for asset sales such as land.
Although tax reform may be a certainty, many of the particulars of legislation are still being hammered out. Given his status as a thought leader in tax policy, Norquist has heard from large numbers of stakeholders. Many insist that Section 1031 like-kind exchanges must stay in the Internal Revenue Code. Norquist agrees, saying, “There is time and a good argument for either restoring or maintaining 1031, particularly on the land basis. People who know about the power of Section 1031 from their own experience need to communicate with their Congressman, Senators, and the Trump administration as soon as possible. It [tax reform] is happening and there is no time to waste.”
Alert your elected officials to the value of preserving this key tax tool HERE.