Investment Property Tax Statute Helps Grow U.S. Economy, Build Communities
July 27, 2017 |
For the first time in more than three decades, Washington is set to tackle a comprehensive overhaul of the U.S. tax code. If accomplished, American companies will have a competitive advantage with lower corporate tax rates, in addition to providing tax relief to middle-class American families.
While comprehensive tax reform is crucial to growing the economy, it should not jeopardize the contribution of capital from the nation’s individual investors or the job creation benefits of commercial real estate. To ensure that the real estate sector can continue to serve as an engine of economic growth, the Investment Program Association urges that individuals continue to have access to Section 1031 like-kind exchanges and that other key provisions of the Internal Revenue Code not be eliminated.
Section 1031 like-kind exchanges encourage investment and reinvestment in communities across the country by making it easier for taxpayers to relocate or upgrade into other real estate assets that better meet their business and personal needs, creating a more dynamic real estate market that generates thousands of jobs in construction, skilled trades and other real estate-related industries. Section 1031 like-kind Exchanges also help ensure that real estate owners can efficiently assign properties to their best use while helping underpin a property market that significantly benefits start-ups and small businesses.
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