Impact of New Tax Efforts on Capitol Hill

Jun 30, 2016

The release on June 24, 2016, of the tax strategy document “A Better Way: Our Vision for a Confident America” by House Ways and Means Committee Chairman Kevin Brady (R-TX) prompted a renewed call to action by ADISA’s leadership to support like-kind exchanges (Section 1031).

"In reviewing the overall tax strategy just released, we feel the 1031 like-kind exchange would fit well into the positive pro-growth thinking; however, we always need to make sure those in Congress know what a like-kind exchange is and what a crucial part it plays in stimulating growth," said ADISA Executive Director/CEO John Harrison.

Over the past two years, ADISA, along with several other associations in the financial services industry, has supported educational efforts to members of Congress on 1031 like-kind exchanges and also sponsored academic studies showing the value of LKEs to the economy at large and to real estate values in particular. ADISA’s Legislative and Regulatory Committee, headed by John Grady, DLA Piper, has identified promoting the 1031 LKE as a high priority for 2016 and 2017.

"We monitor the situation with tax reform and any potential effect on the 1031 very closely,” said ADSIA President Mike Bendix, DFPG Investments, “and we regard our educational efforts and the efforts of the larger coalition as vital not  only to our members but to society at large."

ADISA established a Call to Congress website on the 1031 LKE issue to encourage ADISA members to contact their member of Congress, and has links to the two recent academic studies on the value of LKEs on its website: Economic Impact Study and Ernst & Young Study. The new Better Way tax strategy document released by the House is available here.

"Although the new tax strategy speaks mostly in generalities, we want to ensure a specific pro-growth feature like 1031s stays part of the thinking," noted Harrison.