The July 13th Segment of The Voice for Real Estate, NAR’s video news program, explores why proposals in Congress to curb 1031 tax-deferred exchanges would be bad for residential and commercial real estate. Other segments look at the U.S. Supreme Court’s disparate impact ruling, which can have a big influence on where some housing gets built, and NAR’s latest pending home sales index.
“The Like-Kind Exchanges: Real Estate Market Perspectives 2015 report details the potential impacts upon REALTORS® transactions due to the absence of the tax deferral provision of IRC Section 1031. Repeal of like-kind exchanges or tax-deferral provisions would have a significant ripple effect through real estate markets. A majority of NAR members—95 percent—indicated that they would expect a decrease in real estate values if IRC Section 1031 was repealed. Additionally, 94 percent expected a decrease in demand for core assets/business/service as a result of a potential repeal.”