Washington, D.C. — Early Saturday morning, the Senate passed its tax reform bill. Among the provisions is the removal of personal property from Section 1031 Like-Kind Exchanges (LKE). If signed into law, taxpayers will no longer be able to defer gains made on exchanges of like-kind property — including precious metals coins and bullion.
Leading up to the vote, Senator James Inhofe (R-OK) introduced an amendment that would have restored personal property exchanges to Section 1031, though the measure was never voted on.
The amendment was applauded by the Precious Metals Association of North America (PMANA) who — together with a nationwide coalition of affected industries — were continuing a weekslong, around-the-clock effort working with Congress to reverse the changes.
“First, I want to thank Senator Inhofe for standing up for the preservation of personal property LKEs,” said Scott Smith, president of PMANA. “Now that the House and Senate go into conference in agreement over the repeal, I am fearful of the implications for manufacturers, recyclers, and refiners along the precious metals supply chain if it becomes law,” Smith continued.
Next, the House and Senate will enter into a conference committee to come to terms over the areas in which they disagree. Since both the House and Senate bills include the repeal of personal property LKEs, this issue will not be up for debate among conferees.
Nonetheless, Smith made it clear that PMANA is not giving up and is already looking at other legislative vehicles to fix the issue. “We are going to continue the fight because this is not the end of the road as far as PMANA is concerned,” Smith said.
Press release courtesy of the Precious Metals Association of North America.