On November 2, 2017, the House released its proposed tax reform bill. Senate Republicans released a summary of their tax proposal on November 9th. Fortunately, both tax proposals preserve the ability to defer taxes for exchanges of real property pursuant to Section 1031. However, exchanges of personal property are eliminated under both proposals. In order to become law, the bills need to be passed by the House and Senate, reconciled, and then the final bill must be passed by Congress and signed into law by the President. It’s the goal of the Republican leadership to sign the bill into law by the end of the year.
For more information on why 1031 exchanges are so valuable for investors and how they support growth for the economy, see www.1031taxreform.com.
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