Casey Robinson, of Waldron Private Wealth, has made available for download his article, “Are 1031 Exchanges Right for Me?,” published in The Kiplinger Washington Editors. The article begins as follows:
President Biden’s proposed American Families Plan is shining light on a popular tax deferral strategy used by property owners and real estate investors, mainly because the spending package would eliminate it in certain cases.
A 1031 exchange (named for Section 1031 of the tax code) allows someone to defer paying capital gains on real estate profits if the proceeds are reinvested in another similar property of equal or greater value within a certain time limit. Biden’s proposal would end the exchanges on real estate profits of more than $500,000 for single taxpayers and $1 million for married taxpayers.
Some view investors who use 1031s over and over as exploiting a loophole, while there is a strong argument that their repeated use contributes to an active real estate market and, therefore, stimulates the economy. Regardless, with the Biden proposal affecting only higher value real estate transactions, the exchanges would remain viable for many property owners.
To see the full article, click here: “Are 1031 Exchanges Right for Me?”
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal