Stop Saying the 1031 Exchange is 100 Years Old---It's Just Good Tax Policy

Mar 6th, 2017

"For whatever reason, the durability of the like-kind exchange almost never escapes mention. Here is why this practice should stop: by introducing arguments for the 1031 with reference to the fact that the policy is 100 years old, an utterly moot discussion point is introduced. It sets up critics to attack the policy as “outdated”, “obsolete”, and “arcane”."

"Those interested in the 1031 Exchange should focus on whether it meets the criteria for good tax policy, and keep remarks as lean as possible.

  • Is the 1031 Exchange fair? Yes.
  • Does it raise revenue in the long-run? Yes.
  • Does it stimulate the economy? Yes.

Anything not directly related to these points is a distraction in the context of policy analysis."

"1031 Exchange advocates also have access to several independent economic analyses that indicate that a repeal of section 1031 would have a devastating effect on the American economy. It is a shame when critics, and policy analysts, doing their best to remain unbiased, fail to sufficiently engage with this material. Mentioning that the 1031 Exchange is 100 years old only provides the perfect excuse not to."