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Budget Pressure To Alter Section 1031

As every American knows, our government sometimes spends more than it takes in. Americans know that we must put our financial house in order. The first task is to balance our annual budget so that our huge debt stops getting any bigger. We then face the task of paying down the accumulated federal debt. First, however, we have to agree to stop increasing the mess. Partisan politics have interfered with the process up until now. Americans are angry as hell about this and the politicians now all agree that we must move on this matter.

The pressure to balance the budget means that all areas of the budget have to be analyzed – on both the revenue and expenditure sides. The Internal Revenue Service is a part of the executive branch in the Department of Treasury. They provide the President with information on ways to increase revenue to balance the budget by tinkering with our tax codes.

The IRS has never been pleased with any tax provision that allows taxpayers to avoid taxation, so Treasury has recommended to the President that portions of Section 1031 be altered to "enhance" revenues. They have recommended that the definition of "like-kind" under Section 1031 be altered so as to make fewer transactions tax-deferred.

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