In the 3Q 2019 issue of our quarterly publication, we discuss the latest developments in the municipal market.Municipal issuance picked up in the third quarter following muted supply the first half of the year; robust demand continued to outpace supply despite the increased issuance.Municipal issuers are increasingly turning to the taxable debt market to refund tax-exempt debt, a result of the Tax Cuts and Jobs Act of 2017.
1031 Like-Kind Exchanges offer businesses and investors the opportunity to maximize their return on real estate investments while minimizing their capital gains tax bill. Allowable under Internal Revenue Code 1031, Like-Kind Exchanges are used to defer the payment of capital gains taxes on the sale of real property. The basis of the relinquished property is transferred to the replacement property, thereby delaying the payment of the capital gains tax.
As with hard sciences like physics or chemistry, finance has commonly held “principles” somewhat akin to laws that help govern how investors value assets. The difference is that finance is not a hard science but, like economics, more of a social science that relies on human behavior and psychology. As a result, even the most widely accepted tenets deserve to be examined and turned on their heads at times to evaluate under what circumstances they actually hold up.