Ninety-five years after inception, Congress is considering a repeal of Section 1031 of the Internal Revenue Code.  In November of 2013, the Senate Finance Committee proposed a repeal of Section 1031, but left the door open for a more narrow view of exchanges.  In February, 2014, the House Ways and Means Committee released a draft proposal for discussion that included a total repeal.  Now, President Obama’s 2015 budget contains provisions seeking to limit capital gain deferrals on real property to $1 million per year per taxpayer.   All of these are merely proposals and the most recent Senate reports make no mention of changes to Section 1031, but whispers in the dark can lead to revolutions.  The real estate industry claims that Section 1031 stimulates the economy because it encourages Sellers to sell their properties.  Of course, without 1031 there would be less transactions for real estate brokers and attorneys like me handling real estate deals – until we figure out everything there is to know about deferred sales trusts.