July 21, 2015BOMA International, with support from its Industry Defense Fund and in collaboration with 15 other real estate associations, has released a groundbreaking study focused on the economic effects of a repeal of Section 1031 (or "like-kind") exchanges for real estate. The study illustrated the enormous importance of 1031 exchanges to the health of both commercial real estate and the economy as a whole. If 1031 exchanges were to be repealed, rents would rise, property values would be pushed lower and real estate transaction activity would decrease, resulting in less tax revenue overall. As Congress continues to weigh options for tax reform, some lawmakers are looking at like-kind exchanges as a "loophole" that needs to be closed and a potential revenue raiser; this study disproves that assumption. BOMA will continue to work with our coalition partners to make sure Congress knows like-kind exchanges help grow the economy.
The study can be found in its entirety on the BOMA International website. A one-page fact sheet also is available.