Dave Brown, president of IPE 1031, a firm specializing in 1031 exchanges, foresees potential changes to this foundational tax provision depending on political shifts in Washington, D.C. Alongside his wife and vice president, Katie Brown, whom he met at Drake University Law School, Dave highlights the importance of 1031 exchanges for farmland owners and investors, allowing tax deferral on gains from the sale of business or investment properties if reinvested in similar properties. Despite their century-long history, these exchanges could face new restrictions, like the Biden administration's proposed cap on capital gains tax deferral, which Brown warns could hinder economic growth. However, political opposition, particularly from the Republican-led House, makes the proposal's future uncertain.
