Threats to 1031 Exchanges on Capitol Hill

It seems that Section 1031 is always in the crosshairs on Capitol Hill. Congress believes that either the limiting or elimination of the 1031 Exchange will solve the government’s fiscal woes. I, along with my peers, know that is not the case.

The Federation of Exchange Accommodators (FEA), the only trade organization to represent Qualified Intermediaries in the Unites States, held our conference in Washington D.C. just a few weeks ago. Approximately 40 members gathered for education and meetings with members of congress and/or their staff.

During our few days on the Hill, we had 85 meetings with members from 26 states. For some offices, we reminded them of the importance of 1031 Exchanges to their state’s specific economy and employment. For a few offices, this was a first time they had heard of the 1031 Exchange, so we were able to show them the value of this essential part of the tax code.

As we know and were told in many of the meetings, 2025 will be an important year in Washington D.C. as there will be major tax legislation that must be crafted and passed.

To make your voice heard about the 1031 Exchange, we encourage you to visit the homepage on our website. At the top of the page, there is a bar that says “There are looming tax changes that could limit the amount of 1031 Exchanges…” If you click that “TAKE ACTION” button, it will take you to the FEA’s website where you can enter your information and send an email to your specific state’s Senators and your representative in the House. Make your voice heard by taking 60 seconds to tell Congress that you support 1031 Exchanges as they currently are, and not with any possible limits (or even being eliminated).

As a Qualified Intermediary, Security 1st Exchange is here to assist you during the 1031 process to make sure that things go as smoothly as possible. Always reach out to our team of professionals to help in your successful 1031 Exchange!