Congress is working on a bill that would have a devastating effect on millions of Americans by taxing us on income that we never receive—but you can help us stop it!

Taxpayers
Home Owners
Employees
Real Estate Professionals
Investors
Business Owners
Farmers
Securities Representatives
Business Brokers
Equipment/Rental Businesses
REITs/Limited partnerships
1031 Accommodators

Taxpayers

In the Great Recession, Taxpayers were plundered to pay for the losses incurred by the greed of Wall Street and the Banks as deficits spiraled out of control. Giving Billionaires and corporations massive tax writes offs and increasing taxes on the rest of us would lead to another recession and increased bailouts needed for Freddie and Fannie as well as hundreds of banks that are not properly capitalized to offset losses caused by another major slump in the economy and home prices.

Home Owners

The Financial Crisis and Great Recession of 2008/2009 was primarily fueled by the severe decline in home prices. Repealing the 1031 exchange would cause a significant reduction in residential real estate demand, which would lead to a collapse in home prices. This would cause millions of borrowers to lose trillions of aggregate equity and would cause millions to go back under water on their mortgage.

Employees

The loss of business interest deductions and the 1031 exchange would cause most businesses that use financing in their operations to dramatically scale back operations or go out of business altogether and certain industries would be entirely wiped out. Massive layoffs would ensue and America would be catapulted into another Great Recession, which could further accelerate additional job losses. 

Real Estate Professionals

Repealing the 1031 exchange would cause tens of thousands of real estate agents, brokers, and brokerages to go out of business. 1031 Exchanges make up a large portion of investment real estate transactions. Without 1031, many investors would simply decide not to sell, which would have a materially negative impact on the real estate market and the professionals and support staff that serve that market.

Investors

Repealing business interest deductions and the 1031 exchange would crash the economy and real estate market by effectively increasing taxes on all businesses and real estate investments that utilize financing. These new taxes will disincentivize real estate and business owners from selling their property and trading up, causing a severe reduction in real estate and business transaction volume, and leading to a catastrophic decline in those markets.

Business Owners

The loss of business interest deductions and the 1031 exchange would cause most businesses that use financing in their operations to dramatically scale back operations or go out of business altogether and certain industries would be entirely wiped out. Businesses utilize 1031 exchange when making expansions and transitions. These new taxes would devastate most businesses, lead to hundreds of thousands of layoffs, and catapult the economy back into a deep recession.

Farmers

The vast majority of small to medium-sized farms utilize financing and the loss of business interest deductions would cause most of these farms to scale back operations or close down altogether. Farmers utilize 1031 exchanges to make it possible for them to grow and complete important transitions without being crushed by taxes on capital gains that they have not received. The proposed bill would be a tragedy for most individual and family-operated farms.

Securities Representatives

Thousands of securities representatives, RIAs, support staff, and broker dealers include 1031 exchanges as a core part of their strategy to assist investors. Hundreds if not thousands of representatives and related staff would be immediately out of business if 1031 exchange is repealed.

Business Brokers

A key component of business brokers' transaction volume comes from helping clients successfully navigate their 1031 exchanges. Without 1031s, many business sales would not occur, driving many business brokers out of business. The loss of business interest deductions would also put many thousands of companies out of business, further jeopardizing this important engine of our economy.

Equipment/Rental Businesses

A crucial component of equipment and car rental companies is the ability to complete a 1031 exchange to update vehicle inventory that is ultimately used by the customer and the ability to write off business interest. Without 1031 and business interest deductions, most of these companies would cease to be viable, which would lead to thousands of layoffs, a reduction of competition and selection, and an increase in repair costs, safety issues, and rental costs.

REITs/Limited partnerships

REITs/Limited partnerships, and LLCs often use 1031 exchanges in order to conservatively redeploy capital and prudently dispose of stabilized or non-conforming assets. Repealing business interest deductions and the 1031 exchange would materially impair many of these companies' ability to execute their business plan, would drastically reduce their after-tax income to shareholders, and would negatively impact shareholders and employees.

1031 Accommodators

If the 1031 Exchange is repealed, hundreds of 1031 exchange accommodators employing thousands of people would immediately go out of business.

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Zip * Title *First Name *Last Name *Your Email *Street Address (Physical Location) *Members of Congress require address info to verify mail is from constituents whom they represent.City *State *We respect your privacy and will never share your information with a third party. Privacy PolicyPlease keep me informed by email of important updates.Loss of the 1031 exchange and business interest deduction affects me as a...This provides a stronger impact by customizing the letter below that is sent to your representatives.I urge you to oppose the recent proposals to eliminate or restrict the 1031 exchange. Provisions in IRC section 1031 and other sections currently allow taxpayers to defer capital gains taxes if investment property of like kind is acquired according to certain rules. Revoking the ability of investors to defer capital gains taxes in this way is likely to cut the number of buyers in the residential real estate market significantly. A sharp decline in demand would drive real estate values down, causing millions of Americans to go back underwater on their mortgages, rendering millions of loans undercollateralized, and catapulting us into another severe recession.

Even though eliminating a tax-deferral mechanism might seem like it would increase tax revenue, the drop in home value and reduction in transaction volume it would cause is forecasted to reverse many of the positive effects of the existing legislation that drive significant tax revenue in the first place.

Thank you for considering my input on this issue, which is so important to the economies of our state and nation.

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