Radical Reform of Tax Code

We recently attended a seminar and listened to a tax attorney who specializes in 1031 Tax deferred exchanges.  The topic was Tax Reform and what implications the Trump administration will have if congress overhauls the US tax code.  Here are his insights:

The House Republican Tax Blue Print proposes 100% immediate expensing with unlimited loss carryforward for all tangible and depreciable personal property assets and real estate improvements except land.  It would also eliminate the business interest expense deduction.  In addition, 1031 exchanges are at serious risk of being eliminated to help pay for lower tax rates.  The goal is to pass this by the August recess.  Capital gains rates at this point are anyone’s guess.