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President Joe Biden’s election has renewed the discussion as to whether 1031 tax deferred exchanges are once again in danger of being repealed or modified to limit its tax benefits.

Most supporters of 1031 exchanges expound on its benefit to the broader economy, as well as studies which show that 1031 exchanges are “revenue positive” to Federal and state treasuries.  While those arguments are valid, they are based on logic and reason in what is now a very political discussion.

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