With President Joe Biden’s tax plan, the fate of 1031 exchanges is — as it has been before — in question. His proposal seeks to end the so-called like-kind exchanges for investors with annual incomes of $400,000 or more, which allows them “to defer capital-gains taxes when they sell properties by directing the sale’s proceeds into new investments,” according to Inman.
For real estate agents, this begs the questions: How should they advise investor clients on potential 1031 exchange changes now that it’s on the chopping block again? This week, that’s what we’re asking our readers to share.
We’ll compile a list of the top responses and post them on Inman next Tuesday.