ADISA Continues 1031 Advocacy with Study Sponsorship

Nov 29, 2016

Educating Congress and the public regarding Section 1031 of the Internal Revenue Code, which deals with like-kind exchanges, has been at the forefront of ADISA’s advocacy efforts in 2016. During the year, ADISA developed a call-to-action website, submitted a letter to the Clinton and Trump campaigns, met with congressional staff on Capitol Hill, and engaged in efforts to advocate on behalf of the financial industry for the protection of Section 1031 like-kind exchanges.
ADISA remains committed to advocating for the preservation of Section 1031 and its current treatment of like-kind exchanges. By all reports, Congress is preparing to engage in significant tax reform efforts in 2017. Presumably, the Republican “Better Way” blueprint for tax reform will play an important role in these efforts. It is important for ADISA’s membership to know that this blueprint does not call for a continuation of Section 1031’s treatment of like-kind exchanges. In light of this, ADISA will increase its efforts to educate those in Congress and the soon-to-be-installed Trump administration expected to be involved with tax reform efforts regarding the pro-growth aspects of Section 1031.
ADISA will cooperate with other associations and groups on the issue, and in particular will be co-sponsoring a new study to be carried out by The Real Estate Roundtable that will focus on tax reform economic modeling. The goal of the study is to help educate how certain proposed tax reform elements would change the economics of real estate investments at the owner/investor level. It will be conducted by Dr. Andrew Lyon and colleagues at PwC and is expected to be completed in early 2017.