1031 Exchange Series: Legislative Clarity & Emerging Alternatives

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1031 Exchange Series Legislative Clarity
Emerging Alternatives
The Need for Legislative Clarity In the last 100
years, 1031 exchanges are responsible for
creating a ton of revenue, jobs, investments,
and economic benefit to the nation. During his
campaign, Biden stated he wanted to completely
end the 1031 exchange tax break. While this is
unlikely, it remains unclear as to how the
500,000 limit is being imposed. Is this
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• A 500,000 annual limit for each taxpayer during
  the year?
• A transaction limit taxing gains from any
  disposition exceeding
• 500,000?
• A 500,000 limit per year on gains from any one
  property?
• Biden also proposed raising the long-term capital
  gains tax rate up to 39.6 for those earning
  over 1 million a year. Fewer real estate deals
  means less tax revenue. New York City saw a 49
  decrease in commercial and residential sales in
  2020, missing out on 1.2 billion in tax revenue
  from real estate.
• In the past, significant taxation of real estate
  has disincentivized people from selling so many
  may hold off on doing so until a new
  administration lowers capital gains rates.
  Housing inventory and affordability will drop
  sharply. Fewer investors wanting to sell will
  only worsen the existing housing crisis.
• Read More 1031 Exchange Series Legislative
  Clarity Emerging Alternatives
• Contact Details
• 415-485-4500
• Fund Accounting Service