There are many reasons why we shouldn't cap the 1031 Like-Kind Exchange.
When President Joe Biden released his $1.8 trillion American Families Plan in April, one of the ways he proposed to pay for the increased federal spending was to limit the Internal Revenue Code Section 1031 like-kind exchange deferral amount to $500,000.
According to the president’s own numbers, the proposed cap would generate $2 billion a year for the U.S. Treasury Department. The problem is that the change would cost the government more than it would save. A recent study by Ernst and Young estimates that the current like-kind exchange provision generates almost $5 billion per year in direct and indirect federal taxes, along with billions of dollars in state and local taxes. READ MORE ...
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