On October 4, 2016 Bernie Sanders publicly announced he would introduce legislation in the next session of Congress aimed squarely at improving the “rigged” tax system and closing “loopholes” that Donald Trump had used in the past.
Bernie added the comment at the time that tax breaks for billionaires like the Donald had done nothing to boost the economy or assist the struggling middle and lower classes.
More important than words, the fact sheet from the senator’s office was also released which you can preview here: which includes proposals to exempt real estate from passive loss rules and at-risk rules, as well as the intimation that 1031 exchanges will be done away with entirely. The real estate lobby by itself is a leviathan which explains the history of some tax laws that favor real estate; but the popularity of the 1031 exchange has created a whole cottage industry unto itself. Bernie will face a lot of opposition with these proposals.
Note: This blog was originally drafted on October 6, 2016 and was not updated prior to posting date.
But as always, we are interested to see what happens since we do field a fair share of 1031 exchange questions, and we do work closely with a trusted commercial real estate broker here in Houston.
If the IRS is auditing you based on some real estate transactions please give us a call and let’s talk about the tax controversy process. Frye, Oaks, Benavidez & O’Neil, PLLC: more than 105 years of legal experience now under one roof.