Lately, the Tax Reform Bill and proposed cap on Like Kind Exchanges (LKEs) has been making headlines and spurring conversation. This cap will impact real estate investors who utilize exchanges to grow, diversify, and strengthen the future of their businesses. Like many other financial institutions, Northern Bank is working on understanding the Bill’s impact on investor clients and addressing their concerns.

The New England Real Estate Journal featured Michele Fitzpatrick’s article on the nationwide economic benefits of IRS section 1031 exchange as a spotlight edition in its September 2021 issue. The article highlights recent economic studies commissioned by the Federation of Exchange Accommodators (FEA), as well as the benefits of 1031 exchange. In addition, Michele’s piece addresses the individual benefits of 1031 exchange and the many reasons investors utilize this tax deferment to improve their real estate holdings.

Since 2016, Northern Bank has facilitated hundreds of 1031 Exchanges every year. Those exchanges save our clients thousands of dollars in taxes, which they can invest in better properties, while creating jobs that benefit the economy. We are hopeful that the efforts of the FEA coalition will be successful and that there will be minimal impact to IRC 1031. At Northern Bank we’re ensuring our clients are aware of potential changes, and working with them to find solutions that enable them to expand their businesses.