Once again, proposals to limit or repeal entirely IRC Section 1031 are pending in Congress. President Obama’s budget for the 2016 fiscal year includes a provision that would limit the amount of capital gain that can be deferred under IRC Section 1031 to $1 million. Congressman David Camp (R-Michigan), the chairman of the House Ways and Means Committee, has put forth a proposal to repeal Section 1031 entirely.
This is not the first time that attempts have been made to repeal the like-kind exchange provisions of IRC Section 1031. We will keep you posted on all future developments regarding these proposals.