The UHNW Institute has added a new white paper to the Resource Library, The Death of the 1031 Exchange, from Trevor Schuesler, CFA and Annie Clare of Buchanan Street Partners. This topic was recently the focus of a Family Enterprise USA webinar with founder Pat Soldano, hosted at PKF O’Connor Davies. Family Enterprise USA is a legislative caucus representing family business owners, and the Institute is glad to share this resource given how directly it touches family enterprise and family office planning.
For decades, family business owners relied on 1031 exchanges to defer taxes when selling appreciated real estate. The paper makes the case that permanent 100% bonus depreciation now offers a third path, one that may preserve more capital, provide greater flexibility and eliminate many of the constraints that come with a traditional exchange.
The paper covers:
- Why bonus depreciation now matters more than it used to, and what changed
- How cost segregation studies work in plain terms
- A side by side look at paying tax, exchanging or reinvesting through bonus depreciation
- How real estate can serve as a long-term tool for preserving family wealth across generations
As the authors put it, the question many families face is no longer “must we exchange?” It is “why would we?”
The full white paper is available in the Resource Library or can be downloaded here. Interested in becoming a member? Click here to contact us today.
