Democratic presidential candidate Joe Biden’s proposed tax plan would eliminate 1031 exchanges for taxpayers making more than $400,000 annually. While this may seem like a reasonable cut to some people, it would actually have a devastating impact on the real estate industry and the economy as a whole. In this article, we’re going to discuss why eliminating 1031 exchanges would be bad for the economy.
Negative Impact of Eliminating 1031 Exchanges
Here are some of the negative impacts that would result from the elimination of section 1031:
Economic Stagnation
Lower Property Values
Less investment in workforce housing
Fewer Jobs
Less liquidity in real estate, resulting in declining living conditions and upkeep
The 1986 tax overhaul really decimated the real estate industry for years afterward. This proposal would have a similarly devastating impact. Pull tax incentives from real estate and watch the economic carnage that ensues.
1031 Exchange Professionals
At CPEC1031, we have over two decades of experience in the 1031 exchange industry. Our qualified intermediaries are well versed in the intricacies of 1031 exchanges and can help walk you through the entire process. Contact us today to learn more about the 1031 exchange process and how we can help you defer capital gains taxes on the sale of real estate. You can find us at our primary offices in downtown Minneapolis.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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