Section 1031 Like-Kind Exchanges | National Apartment Association

Section 1031 Like-Kind Exchanges

Issues Summary Overview

A Section 1031 Exchange, otherwise known as a Like-Kind Exchange refers to Section 1031 of the U.S. Internal Revenue Code which provides that capital gains taxes can be deferred if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Such transactions create and preserve many different kinds of jobs, allow multifamily owners to continue investing in real estate while deferring taxes attributable to sales of their investments and enable owners and developers of multifamily housing to most effectively invest their capital and meet the surging demand for workforce housing. Some in Congress and the Administration advocate for elimination or severe restriction of these transactions. Doing so would significantly erode business tools used by property owners and businesses.

NAA/NMHC Issue Fact Sheet: Congress should not alter the present-law like-kind exchange rules as part of any tax reform legislation.  Proposals to revise or restrict like-kind exchanges may have a significantly harmful effect on the value and trading of property. 

Recent Issue News

Press Release on New Study

Legislative Resources

Letter to the Obama Administration regarding a proposal in the Fiscal Year 2016 budget proposal to limit the deferral of gain on real property like-kind exchanges. See the letter

Articles and Reports

Study: The Economic Impact of Repealing or Limiting Like-Kind Exchanges 

Coalition Press Release

Federation of Exchange Accommodators: Legislative History of Tax Policies Supporting IRC Section 1031



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