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Biden Plans to nix 1031 Exchange
CFetters_Nacho_Lover
Moderator, Swaye's Wigwam Posts: 32,914 
Apparently Biden released details of his tax/economic plan and the plan says as president, he would do away with 1031 Exchanges on Real Estate chinvestments. This topic obviously could go in the Tug but it fits here and IMO, fits better.
Joe Biden on Tuesday unveiled a $775 billion plan to bolster child care and care for the elderly that would be financed by taxes on real-estate investors with incomes of more than $400,000 as well as increased tax compliance by high-income earners.
The Biden campaign did not fully explain how the plan for a “caring economy” would be financed, but officials highlighted some tax breaks they would seek to eliminate to raise revenue.
In particular, a senior campaign official said a Biden administration would take aim at so-called like-kind exchanges, which allow investors to defer paying taxes on the sale of real estate if the capital gains are reinvested in another property. The official also said they would prevent investors from using real-estate losses to lower their income tax bills.
https://www.bloomberg.com/news/articles/2020-07-21/biden-proposes-775-billion-plan-funded-by-real-estate-taxes?srnd=premium
Joe Biden on Tuesday unveiled a $775 billion plan to bolster child care and care for the elderly that would be financed by taxes on real-estate investors with incomes of more than $400,000 as well as increased tax compliance by high-income earners.
The Biden campaign did not fully explain how the plan for a “caring economy” would be financed, but officials highlighted some tax breaks they would seek to eliminate to raise revenue.
In particular, a senior campaign official said a Biden administration would take aim at so-called like-kind exchanges, which allow investors to defer paying taxes on the sale of real estate if the capital gains are reinvested in another property. The official also said they would prevent investors from using real-estate losses to lower their income tax bills.
https://www.bloomberg.com/news/articles/2020-07-21/biden-proposes-775-billion-plan-funded-by-real-estate-taxes?srnd=premium
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Comments
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Its not good financial policy because real estate investment is propping this show up. RE still out performs the market and has a vast web of feeder business that employs a lot of folks.
The unintended consequences which are hardly a secret would be big
A caring economy is one where 40 million people get back to work. You do that via incentive not punishment -
You know this. I know this. Even @GrandpaSankey can see it but the progressive left hates capitalism and people who are good at it.RaceBannon said:Its not good financial policy because real estate investment is propping this show up. RE still out performs the market and has a vast web of feeder business that employs a lot of folks.
The unintended consequences which are hardly a secret would be big
A caring economy is one where 40 million people get back to work. You do that via incentive not punishment -
The one thing I like about his plan is for universal preschool for 3 and 4 year olds. Child care is very expensive.
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Why is it expensive?RoadDawg55 said:The one thing I like about his plan is for universal preschool for 3 and 4 year olds. Child care is very expensive.
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Ban 1031's and there will be an immediate mass exodus from rental housing by small owners. The only reason they're hanging on right now in places like the Seattle-metro area is because they can use a 1031 to move their equity to a tax friendly state, if needed. Tax the ability for people to not get raped on capital gains taxes in places like WA (where they are going to be put in place) and there's no longer a reason to be a rental investor if you only have a few units. Bye bye to the affordable rental market.
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Too many women in the work force.UW_Doog_Bot said:
Why is it expensive?RoadDawg55 said:The one thing I like about his plan is for universal preschool for 3 and 4 year olds. Child care is very expensive.
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Great Ceteris Paribus logical fallacy as always.
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I see it two ways.
It will most certainly be a gut punch to the economy, and the majority of mid level Real Estate agents will need to move to another field when home values tank.
This will be a boon for home buyers looking to upgrade their permanent residence, as prices will drop. -
Why should I pay for babysitting your kids?RoadDawg55 said:The one thing I like about his plan is for universal preschool for 3 and 4 year olds. Child care is very expensive.
