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ADISA Board of Directors Votes to Assist in 1031 Advocacy Efforts

Oct 23, 2014

ADISA's board of directors has voted to support the IRS Section 1031 (like-kind exchange) advocacy efforts of two prominent industry groups – the Real Estate Roundtable and the Federation of Exchange Accommodators (FEA). A repeal of IRS Section 1031 was proposed by Congress in the Tax Reform Act of 2014 earlier this year, and has been under review since. 

“We’re proud to be involved in the Section 1031 advocacy efforts of these leading industry organizations, and with the interest and efforts of our members there should be real traction to prevent damage to this important tax like-kind exchange deferment,” said ADISA’s Board  president, Mark Kosanke, co-founder of Concorde Investment.   
 
The Real Estate Roundtable represents an alliance of many prominent real estate firms and trade associations which jointly addresses key national policy issues. The FEA is organized to represent professionals conducting like-kind exchanges, including qualified intermediaries, their primary tax and legal counsel and affiliated industries. 
 
According to ADISA’s Executive Director/CEO, John Harrison, both groups are commissioning studies to show the positive economic impact of the Section 1031 exchanges have had in the U.S.   
 
Harrison said, “The FEA’s study aims to show the overall economic impact of the like-kind exchange provision, and the Roundtable’s study will show the portion of the economic impact attributable to real estate exchanges. We recently had Senator Johnny Isakson (R-GA) speak at an ADISA event, known as a REISA event at the time, where he noted that most legislators don’t fully understand what the like-kind tax deferments are all about and don’t realize the implications that limits on them might have.”  
 
As a result, advocacy efforts are now focused on bringing to light the economic importance of Section 1031 tax deferments. According to Harrison, ADISA plans to give some financial support to both studies plus any review assistance needed. Further advocacy efforts will include reaching out to grassroots and spurring members on to voice their concerns to their members of Congress.
 
“We have to energize and mobilize on this issue,” commented Harrison, “for it’s as they say about Washington, ‘if you’re not at the table, then you might be what’s for dinner’.”