1031 Exchange in Danger!

2020 has certainly been a year that deserves a “reset button.” Yesterday we came together as a nation and casted our presidential votes (I’m pretty sure there was a record set with the amount of people that came out and voted) and we are eagerly awaiting results as to see who will lead this great nation for the next four years.  We’ve been carefully following each candidate to see who would support and further help the real estate development sector. There are tens of items that both candidates are either in favor of or not but one that especially struck out at us was the topic of Section 1031 Exchange.

Joe Biden has spoken about completely eliminating or significantly limiting capabilities of 1031 Exchange! By not being able to move the capital gains from property to property would a fatal blow to many developers. Investors would think twice about dumping their money into a development knowing that in a year or so the development will be stabilized and sold, they would be stuck with a 40% tax gain bill! I understand that this year the government has spent an insane amount of money trying to keep the economy treading water and will be looking for places as such to replenish their coffers but this would detrimentally hurt the development world.  

BuildPro Construction Services