As part of our continued efforts to resist changes to IRC §1031 exchanges, we bring you the following alert about proposed changes to this popular investment vehicle in the Clinton Campaign’s tax plan. Revisions to the Clinton Plan announced last month included a limitation on capital gains deferral similar to the restrictions proposed by the Obama Administration in their latest budget proposal.


The FEA Government Affairs Committee brings you this Member Alert

Clinton Campaign Revises Tax Proposal, Includes Changes to Section 1031

A limitation of Section 1031 like-kind exchanges was included among revisions to Secretary Hillary Clinton’s tax platform on Thursday, September 22, 2016. The policy changes are aimed at reforming capital taxation, according to her campaign website. The proposed limitation on Section 1031 is believed to be similar to the Administration’s FY2017 budget proposal. President Obama’s FY2017 proposal would limit capital gains deferral to $1 million per taxpayer per year for both real and personal property and exclude art and collectibles from eligibility. According to the Center for a Responsible Federal Budget, the inclusion of this similar limitation would be expected to raise more than $35 billion dollars that would go towards funding Secretary Clinton’s proposals.

Both campaigns’ tax plans continue to evolve. However, the Trump campaign has not yet released many details of his tax proposals, and there is some ambiguity in what has been made public thus far.

Last week, FEA and several other associations that represent end users of like-kind exchanges sent letters to both the Clinton and Trump campaigns, urging the preservation of the provision. Copies of the EY and Ling-Petrova studies were included with these letters.

Read the Clinton campaign fact sheet here.

Read an assessment from the Center for a Responsible Federal Budget here.

Brent Abrahm, Suzanne Goldstein Baker, Max Hansen
FEA Government Affairs Committee Chair

We urge you to read through the material and contact your elected representatives to let them know you are against the proposed changes. If you need more information, follow the links above or contact our office.