C.A.R. President-elect Dan Wagner
If Section 1031 like-kind exchanges were repealed, the nation’s economy would shrink by an estimated $8.1 billion even when combined with lower tax rates, a new analysis found.
The higher cost of capital would discourage business investment – which adversely affects the overall economy, according to theErnst & Young Section 1031 Economic Study.
Since the 1920s, the like-kind exchange rules have allowed for the deferral of capital gains tax and ordinary income tax on business or investment property if the property is exchanged for like-kind business or investment property. Section 1031 like-kind exchanges spur investment and reinvestment in U.S. assets, and make it easier for taxpayers to relocate or upgrade into assets that better meet their business needs.
C.A.R. President-elect Dan Wagner of The Inland Real Estate Group spoke at the news conference announcing the study’s findings on Tuesday, March 17.
“自1980年代以来,like类型的交流发展into an even more dependable and mature growth engine for the American economy,” Wagner said.
The study found that repealing Section 1031 would:
• Result in less federal revenue
• Shrink the economy by $8.1 billion
• Discourage investment
• Negatively impact the overall economy, with an unfair concentration in certain industries
• Unfairly burden certain businesses and taxpayers
• Counter the goals of tax reform
Email your congressional representativeto ask they oppose the proposal to repeal like-kind exchanges.