With a recently released framework for tax reform, there are still many unanswered questions. One of the largest open questions for the CRE industry is what will happen to the 1031 Like kind exchange, which was not explicitly detailed in the proposal. This tool is one of the most widely used for commercial real estate practitioners with 63 of the latest NAR survey saying that they had done a 1031 Like kind exchange transaction in the five years.
The NAR Commercial Committee, which has representation from CARW members, has been tasked with continuing to educate and inform legislators AND members about the 1031 Exchange, and remain ready to advocate for the continuation of the program once details of the tax reform proposal is unveiled. NAR hosted a Facebook Live event to discuss the anatomy of a 1031 exchange featuring two members; content can be found here: https://www.youtube.com/watch?v=wjssU9Wy5qQ
NAR presented a series of webcasts about what the Republican tax reform proposal means for the real estate industry and ways to use 1031 like-kind exchanges for real estate transactions. For more information on the 1031 Exchange and the NAR talking points, click here.