In June, two members of the House Agriculture Committee, Representative Bob Gibbs (R-OH) and Representative David Rouzer (R-NC), and 17 other congressmen and congresswomen wrote a letter to House Ways and Means Committee Chairman Kevin Brady (R-TX) urging the committee to help preserve 1031 like-kind exchanges. The letter, attached below, called Section 1031 "integral to [its] operations and ongoing vitality."
"The provision serves as an important tool for providing flexibility and increased economic efficiencies for the agricultural community. Section 1031 permits a taxpayer to exchange business-use or investment assets for other like-kind business-use or investment assets, without recognizing taxable gain on the sale of the old assets. These taxes, that would otherwise be due if the transaction was structured as a sale, are deferred. The repeal of this fundamental provision would have a monumental negative impact on the industry as a whole."
In the photo above, Federation of Exchange Accommodators Government Affairs co-chair and Accruit CEO Brent Abrahm discusses the letter with Representative Brady at a legislative event with the Associated Equipment Distributors trade association. Read more about these recent efforts on behalf of Section 1031 in yesterday's article on the Americans for Tax Reform website, "Like-Kind Exchanges are a Model for All Capital Gains."