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Thumb of Michigan | I tried to find some info on the history of 1031 exchanges, didn't have any quick luck anyway. I can say with some confidence that 1031's were not made law to benefit the majority of farmers, or the majority of any other group of people who own business real estate.
But just to emphasize something very important and often misquoted: a 1031 DOES NOT let the seller avoid capitol gains taxes, it defers them. I hear terms such as "tax free exchange" thrown around, its just not accurate.
For those who complain about 1031's because they didn't get a shot at some land because of them, or there's a feeling that there's not much land for sale, just consider this scenario: If Congress increases capital gains taxes, that would take some land off the market. If you REALLY want to see a lot of land taken off the market , raise capitol gains in conjunction with eliminating 1031's.
Edited by pat-michigan 12/4/2010 23:03
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Someone explain to me how a 1031 exchange is good for farmers...
