Trump Tax Plan: end of the 1031?
I would like to have an open discussion in this group about Trumps Tax Plan and the potential affects on the commercial real estate industry. Especially on the topic of the potential ending of the 1031 exchange. 
[{"id": "dgultyw", "text": "In what way? I havent looked into it and I dont deal with this at work but other coworkers do.", "replies": [], "depth": 1}, {"id": "dgutzyf", "text": "I have serious doubts that the 1031 market goes away primarily because it would have an adverse effect on Trumps personal wealth. ", "replies": [{"id": "dgvflpf", "text": "I doubt trump uses exchanges all that often. We in the industry see it the most on smaller NNN deals. It's one of the main driving factors in the NNN market. ", "replies": [{"id": "dgvvroy", "text": "Agree 100% that he doesn't use it often (if at all) but net lease would take a lot of other asset classes down with it. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dgv6v4r", "text": "Are you just speculating here or did you see something that makes you think this could happen?  I'm with the others, I'd be amazed if 1031 goes away.  I wouldn't have said that a few months ago.  I haven't heard him bring this up at all and it would really surprise me based on both his personal losses from this (at that of his family) and the over all theme of cutting corporate and high earner taxes.  This would be a giant tax raise for a lot of folks who make campaign contributions and seems anti the sentiments of the rest of his proposal.  \n\nAnyhow for the second part of your question, if 1031's go away I imagine we'll get a bit of notice and those of us in brokerage will make a few hundred percent more than we all did last year with everyone moving stuff around to get setup for the long haul.  After that sales volume probably dies off some.  At some point though that becomes the new normal.", "replies": [{"id": "dgv8i4e", "text": "There's been a bit of buz about it. Primarily speculation though. The big IF, is that trump will need to close the 1031 loophole in order to get his 15% Corp. tax pushed though. I mean, the 1031 is a giant loophole corporations use that was originally intended for farmers in the early 20th century. ", "replies": [{"id": "dgvcnnn", "text": "1031 is the closing of a loophole.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dgva56i", "text": "I usually only see 1031 on smaller 'family' deals or with loans syndicated to TIC investors. Most of the TICs use 1031 funds from smaller deals to try and upsize.  \n\nDo a lot of large deals get done with 1031? If yes, then it's not going to happen. If it's not happening with $100M deals, then I could easily see it getting chopped. ", "replies": [{"id": "dgvfjs0", "text": "I think it depends on the deal and who's involved. Equity might take the money and cash out. However, developers might look to exchange. \n\n The 1031 isn't strictly real estate though. It also applies to companies who use it to exchange on assets like airplanes and major machinery. ", "replies": [], "depth": 2}], "depth": 1}]