The Unintended Consequences of Tax Reform

Feb 17th, 2017

"If we eliminate 1031, deals will stop happening. That will cause property values to decrease. When property values decrease, then you can't even refinance out your equity and you're locked into the property and unable to sell.

The last time we had tax reform in 1986 the real estate market plummeted and it stayed down for a considerable time. That exasperated an already bad situation and created an unintended consequence with the savings and loan crisis, which all of us taxpayers ended up having to bail out. Eliminating 1031 is not a good idea. We need to preserve 1031..."