Biden’s NEW Proposal Could Cause Housing Market To EXPLODE | Housing Bubble 2021
President Joe Biden has just proposed a plan to make major changes to the 1031 exchange. You might be wondering why this is a big deal. Real estate investors have used the 1031 exchange for many decades which allows you to defer taxes on the sale of your property as long as you use the profits to reinvest into a like kind property of equal or greater value.
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President Joe Biden has proposed to set a limit of $500,000 for the 1031 exchange. This would mean if you’re making more than $500,000 in profit then you won’t be eligible for a 1031 exchange. This has the potential to cause many multifamily investors to start changing their shifts over to single family residences along with smaller multifamily properties such as duplexes, triplexes, and four-plexes.
This along with the 39.6% Capital Gains tax being proposed and the $15,000 tax credit have the potential to add even more fuel to the already steaming hot housing market we’re currently in and make housing even more unaffordable and harder to get for the average buyer.
#HousingBubble #HousingMarket #1031Exchange
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