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The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate – A Candid Discussion with the Authors of the Recently Updated Ling-Petrova Study

The Tax Cut and Jobs Act – which was signed into law on December 22, 2017 and took effect on January 1, 2018 – significantly revised Section 1031 for real estate exchanges. The new law made the sale of personal property ineligible to enter 1031 like-kind exchanges and their associated tax benefits, with the previous provisions now only covering transactions involving qualified investment and business properties. Despite these already significant updates, the full repeal of Section 1031 for real estate remains a primary issue for many presidential candidates and will continue to be on the short list of potential revenue raisers for any new legislation.

In 2015, a coalition of industry stakeholders collectively sponsored an academic study on the economic impact of 1031 like-kind exchanges. The study by Professors David Ling (University of Florida) and Milena Petrova (Syracuse University) was instrumental in helping support our advocacy initiatives and preserve these critical investment vehicles for many Main Street investors. The coalition recently reengaged Professors Ling and Petrova to update and refine their study as we prepare for another potential repeal of this valuable wealth builder.

Join us as will review and discuss Professors Ling and Petrova’s latest findings as we prepare to advance the conversation on preserving like-kind exchanges for real estate.

David LingMcGurn Professor of Real Estate and the Director of the Master of Science in Real Estate (MSRE) Program University of Florida Department of Finance

Milena Petrova – Syracuse University Department of Finance