On behalf of more than 30 national real estate, housing, environmental, farming, ranching, forestry and financial services-related organizations, ADISA co-signed letter to key members of chief tax counsels of the congressional tax-writing committees, as well as Secretary of the Treasury Janet Yellen, stressing the importance of Section 1031 Like-Kind Exchanges as Congress works to broaden the economic recovery as it reviews the impact of existing tax provisions.
The coalition emphasize how like-kind exchanges of real estate under section 1031 of the tax code support job growth and investment, the health of U.S. commercial real estate and real estate markets; and the preservation of family-owned farms, ranches and forestland. Gains reinvested in new property through an exchange create a ladder of economic opportunity for small and minority-owned businesses and entrepreneurs, and generate much-needed tax revenue for State and localities.
The key points in the letters include:
- Like-kind exchanges will accelerate our economic recovery from the pandemic by preventing real properties from languishing, underutilized and underinvested.
- Rules for like-kind exchanges are narrowly tailored and well-designed.
- Like-kind exchanges are an engine of job creation.
- Farmers, ranchers, and forest owners heavily rely on like-kind exchanges.
- Like-kind exchanges promote land conservation and environmental protection.
- Increasing the supply of affordable rental housing requires like-kind exchanges.
- States and localities depend on like-kind exchanges for tax revenue.
- For many Americans, like-kind exchanges are a principal tool for retirement savings.
- Like-kind exchanges reduce the cost of capital and make the economy more efficient.
- Additional federal taxes are collected in the years following a like-kind exchange.
- Like-kind exchanges help stabilize property values and real estate markets during an economic crisis.
The coalition also included the study on the economic impact of like-kind exchanges by Professors David C. Ling and Milena Petrova
in its communication to Congress and the Secretary of the Treasury.
The signatories include:
ADISA—Alternative & Direct Investment Securities Association
American Farm Bureau Federation
American Hotel & Lodging Association
American Land Title Association
American Resort Development Association
Asian American Hotel Owners Association
Building Owners and Managers Association (BOMA) International
Commercial Real Estate Finance Council
Federation of Exchange Accommodators
Forest Landowners Association
Institute for Portfolio Alternatives
Institute of Real Estate Management
International Council of Shopping Centers
Land Trust Alliance
Latino Hotel Association
Mortgage Bankers Association
NAIOP, the Commercial Real Estate Development Association
National Alliance of Forest Owners
National Apartment Association
National Association of Home Builders
National Association of Black Hotel Owners, Operators and Developers
NATIONAL ASSOCIATION OF REALTORS®
National Cattlemen’s Beef Association
National Council of Farmer Cooperatives
National Multifamily Housing Council
REALTORS® Land Institute
The Conservation Fund
The Nature Conservancy
The Real Estate Roundtable
You can read the letter to the Secretary of the Treasury here