1031 Exchanges: Continuing Education, Collaboration, and an Evolving Landscape

by Maura Snabes, Esq., CES, NTP

Those who know me know that my passion for 1031 exchanges is every bit as strong as my passion for the title industry. I founded the 1031 exchange company in 1995, became a member of the Federation of Exchange Accommodators (FEA), earned the Certified Exchange Specialist® (CES®) designation, and have had the privilege of helping facilitate thousands of exchanges of all types and sizes throughout my career.

One of the many reasons I remain so enthusiastic about 1031 exchanges is the opportunity for continuous learning, professional development, and collaboration with colleagues who share a commitment to this specialized field. The FEA’s annual conference provides an invaluable opportunity to exchange ideas, discuss emerging issues, and stay informed about developments affecting our industry.

This year’s conference was held in September in Salt Lake City, Utah and offered an excellent combination of education, collaboration, and thoughtful discussion.

David Gorenberg and I began the conference by leading an informative four-hour boot camp designed for newer 1031 exchange intermediaries. Helping professionals build a strong foundation in the fundamentals of like-kind exchanges is an important part of strengthening our industry and supporting the next generation of exchange professionals.

Several key topics and takeaways stood out during this year’s conference:

1. Improvement Exchanges

Improvement exchanges remain a valuable and sometimes underutilized planning tool. When properly structured, they can allow a taxpayer to use exchange proceeds to make qualifying improvements to replacement property, increasing its value and helping tailor the property to the taxpayer’s specific needs. Understanding the applicable timing, ownership, and other requirements is essential to executing these transactions successfully.

2. Reverse Exchanges

Reverse exchanges can provide a practical solution when a taxpayer needs to acquire replacement property before selling the relinquished property. This strategy can be particularly valuable when a desirable acquisition opportunity arises, but the existing property cannot be sold prior to acquisition. As with all exchange structures, careful planning and compliance with the applicable requirements are critical.

3. Corporate Transparency Act Update

August 11, 2026, FinCEN permanently removed the beneficial ownership filing requirement for US entities. It will delete all filings made to date.

4. The Political Landscape and the Future of Section 1031

As Congress considers potential revenue sources and policies addressing housing affordability, longstanding tax provisions—including Internal Revenue Code Section 1031—may continue to receive attention. The primary takeaway is not that Section 1031 is necessarily facing an immediate change, but that the legislative environment remains fluid and warrants close attention.

Potential approaches that could affect Section 1031 include:

• Capping tax deferrals: Proposals that would limit the amount of gain eligible for deferral over a taxpayer’s lifetime, such as a proposed $1 million cap.
• Narrowing eligibility: Changes that could restrict the types of taxpayers, properties, or transactions qualifying for like-kind exchange treatment.
• Using Section 1031 as a revenue source: Modifications to exchange rules as part of broader legislative packages designed to fund other policy priorities.

These possibilities reinforce the importance of staying informed, engaging with industry organizations, and understanding how legislative developments could affect real estate investors and the professionals who serve them.

Conclusion

The annual FEA conference was a valuable reminder of why I remain so committed to the 1031 exchange industry after all these years. From educating newer intermediaries and sharing practical strategies to discussing regulatory developments and potential legislative changes, the annual conference reinforces the importance of continued education, collaboration, and proactive engagement.