03
Nov 2014

IRC Rule 1031 being repealed?

By admin

There is currently a proposal in Congress that will have a negative effect on real estate investments. 1031IRC §1031 is currently in talks to be repealed.

There are three tax reform proposals in Congress that would repeal Section 1031 of the tax code in order to raise revenue to the IRS. While tax reform is a worthy goal, we certainly believe this is the wrong way to do it. When you add the Federal, State and Health Care taxes, it would result in a 40% effective tax rate on many commercial and residential real estate investment transactions for both large and small investors in many states.

Section 1031 has been an important part of the tax code since 1921. Congress is wrong in assuming that it would raise revenue because eventually the taxes do get paid. Section 1031 is not a tax deduction. It is a tax deferral. It is also a very important economic stimulant.

Take the time to call your local senator or congressmen to voice displeasure as it pertains to these recent developments. If you are a real estate investor this will hit your bottom line in a big way.

Follow the following link in order to help avoid such a repeal. http://www.1031taxreform.com/

We as a Title Insurance company are here to assist with all of your closing needs. We realize that 1031 transactions are a large part of today’s real estate investors buy xanax paypal long term planning. Without such a vehicle there will be less transactions, less buying and selling and in turn will have a negative impact for the real estate world in general.

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