[Editor's note: 1031Gateway supports the efforts of groups like www.SaveThe1031.org, which is exposing the devastation this tax reform proposal would unleash on our economy and mobilizing Americans to make their opposition known to Congress in order to stop this bill. Please visit www.SaveThe1031.org and fill out their form to directly send individual letters to your representative and senators in Congress, urging them to fight for the 1031 exchange.]
"With Donald Trump in the White House as of January 20, 2017, and Republicans controlling both the House and the Senate in the next Congress, the odds of significant tax legislation being enacted in 2017 or 2018 have increased significantly. ... During the course of the presidential campaign, Trump modified elements of his tax proposals to correspond more closely with the blueprint ... " & KPMG.
"...the blueprint proposes to limit a business’ ability to deduct interest expense ... The blueprint’s denial of interest deductions overlaps to some extent with the proposed section 385 regulations.
However, unlike the primary focus in the proposed section 385 regulations on intra-group debt, the blueprint proposal is broader and would apply to deny a deduction for net interest expense arising from interest payments to third parties as well. In addition, the blueprint would disallow business interest regardless of whether the standards of the proposed regulations are satisfied."