Tax Reform

This resource page and the linked articles are intended to educate and to inform investors and professionals about the benefits of IRC Section 1031 and what they can do to preserve it considering current legislative threats.


Over the past year, there has been growing speculation regarding the potential tax policies of a Biden White House and how they may affect real estate. President Biden’s address to Congress on April 28, 2021, made it clear that his proposed tax policies would have a major effect on real estate and several related industries. As you may be aware, the Administration has specifically targeted IRC §1031 tax deferred exchanges and has proposed plans to place limitations on it. Read the official White House Fact sheet here.

Section 1031 allows investors to reinvest the proceeds from their sale into new business or investment real estate that would otherwise have been paid to the government as a capital gains tax. Tax deferred exchanges are not new — they have been available in one form or another since 1921, and in its current format since 1986.

What are the proposed limits to 1031 Exchanges?

The Biden Administration proposes limiting 1031 gain deferral to $500k of gain per taxpayer and $1M gain per married couple, per tax year. It is currently unclear how this proposed gain limitation would apply to real estate held in tax partnerships.

Real Estate Investing Outlook – A Discussion on the Economy, Tax Reform, and Proposed Limitations for 1031 Exchanges

In this video we discuss the outlook of our economy and how current tax reform proposals might affect real estate markets, investors, and the real estate industry, with a focus on the effects of the proposed limitation on IRC Section 1031 Tax Deferred Exchanges. Featuring Todd R. Pajonas, Esq., President of Legal 1031 Exchange Services, LLC, Scott Clemons, CFA®, Chief Investment Strategist for Brown Brothers Harriman, and Brian M. Cooper, CO-Chief Executive Officer of Kensington Vanguard National Land Services.

Shared Resources courtesy of the FEA - Federation of Exchange Accommodators

The following are informational resources shared with the permission of the FEA. Please feel free to share with your clients and network and to visit for similar content and links to write Congress.

1031 Advocacy and Tax Reform Resources

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