Commercial real estate professionals got worried in 2021 when the Biden administration floated its proposals to cut big tax reduction strategies, including 1031 like-exchanges. Congress didn't move them into law, generating a giant collective sigh of relief in the CRE industry.
But the recent White House budget shows that the administration would still love to get rid of the 1031 by making it only eligible for a top property value of $500,000 for an individual and $1 million for a couple. (At current property prices, it's not clear how often even small-time investors would be able to take advantage.)
Many professionals doubt that the necessary changes will make their way through Congress. Then again, only recently did a bill that would make daylight savings time permanent get through the Senate without the senators even realizing what they were agreeing to, as NPR and other outlets noted..
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
