How full Democratic control of Washington DC could transform real estate - Business Insider

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How full Democratic control of Washington DC could transform real estate

Also called the 1031 transfer, the exchange is a provision that gives property owners and investors the ability to defer capital-gains taxes at the sale of an investment or business-use property, provided a "like-kind asset" is purchased with its profits.

Real-estate investors, including President Trump, have long favored the strategy, and Biden has proposed ending it for those who take in a yearly income of more than $400,000. Under the new plan, real-estate investors would also be prevented from deducting real estate losses from their taxable income.

Targeted by both Democrats and Republicans over the years, the 1031's potential repeal could mean the loss of more than $50 billion for real-estate investors over five years, according toAnd with the new balance of power held in majority by the Democrats across all three branches of government, the congressional approval a repeal would require seems more likely than ever under the Biden administration.

, a policy implemented under Obama. The rule required communities receiving specific types of federal funding to analyze local housing patterns and combat policies found to be consequently discriminatory. Biden plans on reimplementing it.

 

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