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Biden Plans to nix 1031 Exchange
CFetters_Nacho_Lover
Moderator, Swaye's Wigwam Posts: 28,835
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
Comments
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
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.
This can't happen soon enough.
It’s demand that makes them expensive. No business that has a waiting list for customers feels the need give a deal.