Contact Your Congressmen and Senators
Clients and Colleagues,
I am reaching out to inform you that there is a particularly unfavorable proposal being considered relative to Real Estate investing. The Bill being considered would cap the amount of a 1031 exchange to a maximum deferral of $500,000 of gain. This will effectively repeal 1031 exchanges for commercial real estate. This could certainly curtail the number of sellers in the market, making it even more difficult to find eligible properties in which to invest. This could also have ramifications for the overall rental market in that sellers who are not interested in maintaining their properties will refrain from selling.
Those of you old enough to remember the “at risk” rule change made in the 1986 Tax Act also remember how the real estate market crashed after the enactment of this law. In turn, those investors who invest and revitalize properties will not have the opportunity to do so and then find other places to deploy their capital. Without reinvestment, these properties could become blighted, creating poor living conditions for the residents.
Please take a minute to click on this link Support Section 1031 to let Congress know that 1031s need to be retained.
Thank you,
Jeffrey M. Verdon Law Group, LLP
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NOTE: This is a publication of Jeffrey M. Verdon Law Group, LLP and is intended to provide information on recent legal developments. This report does not create an attorney-client relationship nor should it be construed as legal advice or an opinion on specific situations.