Preparing for possible tax changes.

[David Hedges]

I had been reading an article on marketwatch (https://www.marketwatch.com/st...), the part that stood out to me were the possible changes related to real estate that may be put into place. 

- eliminate the $25,000 exemption from passive loss

- eliminate section 1031 like-kind exchanges that allow deferral of capital gains

- eliminate rules that allow faster deprciaion write offs (I assume this is geared toward killing oppertunity zones)

- eliminate qualified business income deductions for profitable real estate activity

- elimination of basis step-up for inheritance 

I wanted to see if anyone is planning to make any changes or take any specific action mitigate any of these?

[Michael Plaks]

1. We don't know what will change. Remember - even during the Trump tax reform debate, 1031s and other tax breaks were threatened, yet they are still here.

2. We do not know when it will change.

Planning under these conditions is highly problematic and may backfire if you guess wrong.

Also, remember that most people in Congress, regardless of party affiliation, are wealthy business people and owners of real estate who are not interested in shooting themselves in the foot.