Section 1031 Like-Kind Exchange
NAR opposes any change that would undermine the deferral mechanisms associated with exchanges or lead to fewer transactions. The like-kind exchange technique is fundamental to the real estate investment sector. The current law provides investors with a great deal of flexibility in managing their real estate portfolio. Real estate is essentially an illiquid asset that requires substantial commitments of cash. Flexibility is needed in order to assure the free movement of property and capital. This, in turn, results in economic growth and job creation.