IRS section 1031 is a popular tax-deferral strategy that Congress is considering doing away with, but there are efforts afoot to prevent the repeal of this internal revenue code section. Currently tax payers can use section 1031 to defer capital-gains taxes on the sale of investment property by reinvesting the proceeds into other “like-kind” investment property. The taxpayer must follow the strict deadlines and other specifications that come with the code section. Some argue that getting rid of section 1031 would help the government raise more revenue, while others counter that these tax deferrals are good for promoting investment and economic growth.
See Move afoot to block repeal of IRS Section 1031, The Spectrum, June 24, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
