Section 1031 not only serves the goal of tax reform, it provides a strong incentive for economic growth and investment
1255 SW Prairie Trail Parkway Ankeny, IA 50023 (PRWEB) January 25, 2014
The Federation of Exchange Accommodators (FEA) announced the submission, on January 16, 2014, of its comments to the Senate Finance Committee(SFC) recent Staff Discussion Draft on Cost Recovery and Accounting.
The SFC's Discussion Draft proposes eliminating Section 1031 tax deferred property exchanges, as well as sweeping changes to the depreciation rules and the depreciation recapture rate. The FEA was grateful for the opportunity to submit comments and voice the concerns of the exchange facilitator industry as well as its clients.
The FEA, along with a host of other stakeholders in the national business community have cautioned the SFC that the proposal would curtail economic growth, deflate the real estate market, stifle manufacturing, sales and leasing of machinery and equipment, create hardships for a broad range of investors, property owners and businesses without any net benefit toward true tax reform. FEA President William Horan of Gainesville, Virginia, stated in his comments to the SFC, “While the FEA continues to support the goals of tax reform, we are also hopeful the tax reform process will take into consideration the enormous benefits that Section 1031 exchanges provide to the US economy. Property exchanges promote transactional activity that results in jobs and taxable income that, in turn, fuel other businesses. Tax-deferred exchanges are one of the few incentives available to and used by taxpayers of all sizes.”
Mr. Horan concluded his comments, “… Section 1031 not only serves the goal of tax reform, it provides a strong incentive for economic growth and investment at home, in the United States. The FEA believes that Section 1031 like-kind exchanges should be retained in present form as part of the tax code, and continue to be available for exchanges of qualifying tangible and intangible personal property and real property assets.”
For a copy of the FEA comment letter, click this link: http://www.1031.org/pdf/2014/SFC_Tax_Reform_Ltr_1-16-2014.pdf.
About the FEA:
The FEA is the national industry association of exchange facilitators (also known as Qualified Intermediaries), companies which assist taxpayers in structuring tax deferred property exchanges under Section 1031 of the Internal Revenue Code. The FEA has been the voice of the exchange facilitator industry for the past 25 years.