Why should you to Exchange sooner rather than later?
1031 property tax exchanges has been in effect in this country since 1913 and has not been substantially changed since 1924 to 1984. However now there is an argument in favor of Repealing section 1031 exchanges saying is disproportionately benefits wealthy taxpayers, causes overinvestment in property. In Obama’s 2015 budget he proposed a gain deferral to $1 million per taxpayer per taxable year, which was estimated $18.27 billion budget deficit reduction.
The National Association of Realtors (NAR) have been fighting to retain the existing tax code. The NAR believe the modification of the 1031 exchange tax code exchanges would discourage property investments because there wouldn’t be enough money left after paying the capital gains tax to purchase a replacement property of comparable or higher value.
There is no telling what congress is actually going to do with 1031 exchanges! Thus I encourage you, if you have been considering selling or exchanging your investment property to do it sooner rather than later.
Tory Castillo, I am a mother, neighbor and Realtor
Real Estate Agent / San Ramon, CA
Mobile (925) 718-6658