From the Winter 2023 Issue of Terra Firma Magazine
By Russell Riggs, NAR Director of Environmental Sustainability Policy

The Inflation Reduction Act (IRA) passed in 2022 originally included nearly a dozen tax increase provisions which would have had a major negative impact on real estate and/or NAR members had they been enacted. NAR's advocacy was successful in removing these by educating Members of Congress on the unhealthy economic consequences of these proposals. The proposed changes, which were all left ouf of the final bill, included limitations on 1031 like-kind exchanges; increase in the top capital gains tax rate; a proposal to tax capital gains at death; taxation of carried interests as ordinary income; an expansion of the 3.8% net investment income tax; limits to the 20% qualified business income deduction and increases to the estate tax.

RLI Advocates Against Tax Changes Detrimental to Family Farmers and Ranchers

Increasing estate taxes and eliminating the step-up basis would have serious consequences for American family farmers and ranchers. More Information

• Statement for the Record – Hearing on Funding and Financing Options to Bolster American Infrastructure, Senate Finance Committee

RLI Builds the Case for the Value of Like Kind Exchanges
President Biden has proposed eliminating 1031 like-kind exchanges for gains over $500,000 to help fund his American Families Plan. The REALTORS^® Land Institute and the National Association of REALTORS^® oppose any reform to this provision and have been working to educate Congress about the value these exchanges bring to the real estate sector and the economy as a whole. More Information

• Ernst & Young Macroeconomic Study
• Ernst & Young Macroeconomic Study Summary
• Ling & Petrova Microeconomic Study
• Ling & Petrova Microeconomic Study Summary

Articles by RLI Member Dan Wagner, Inland Real Estate:

• Chicago Agent Magazine: Ending 1031s Hurts Land Conservation-Farmers

• Atlanta Agent Magazine: The 401(k) of Real Estate: The 1031 Like-Kind Exchange

• Boston Agent Magazine: The 1031 Like-Kind Exchange is a Key Tool for Investing in Diverse and Inclusive Communities

Use this form to tell NAR about how you used 1031 to bring development and economic benefit to your community. Your stories will help put a human face on a critical issue for commercial real estate.