The chatter on tax reform is getting hotter (we may even get an update from the Big Six this week larger than one page). One of the items being hotly debated is the elimination or curtailment of Section 1031 tax-deferred exchanges. Currently, farmers are allowed to exchange their equipment for new farm equipment and usually owe no tax on the exchange. Also, farmers can sell less productive farmland and roll that gain over into new farm land and defer the tax. And if they pass away owning the property, the deferred gain with disappear.
Follow the link to continue reading about the concern of eliminating 1031 exchanges.