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The Logic Of Those Who Would Alter Section 1031

There are strict reporting rules for 1031 exchanges and therefore the IRS is aware of all 1031 exchanges. They know that there are presently $ X Billion in exchanges. Based on this number they feel they can raise approximately 28 percent of $ X Billion in federal revenue (28 percent is the tax rate) if these transactions are made taxable. What they are assuming is that there will still be something like $ X Billion in exchanges if Section 1031 is eliminated or modified. This assumption is the critical flaw in their belief that alteration of Section 1031 will lead to an increase in revenues.