Proposition 10: A Threat to All Property Owners and Investors
1031 Exchanges Are Under Attack
Recent government tax reform discussions have proposed eliminating or sharply curtailing the benefits of 1031 Exchanges.
1031 Exchanges have been in place for decades, helping real estate investors sell properties and reinvest the proceeds into new properties, while deferring capital gain taxes. These exchanges have allowed investors to expand their portfolios, increase their return on investment, and have promoted real estate sales for years.
Both the House of Representatives and the Senate have threatened to repeal exchanges after 2014, and President Obama’s 2015 Budget restricts the amount that can be deferred to $1 million per taxpayer per year.
If the tax reforms take place, the change will severely affect the real estate industry. Opponents of the reform argue that 1031 Exchanges are “one of the few incentives available to and used by taxpayers of all sizes.”
Be sure you are prepared in advance. Speak with an Azzi Advisor today to learn more about your options.
