1031-endangered? Retroactive? Maybe next year, maybe now?

Question

Is there any chance a 1031 repeal could be retroactive with the Biden regime? TAX! the wealthy is the chant that is getting louder. In Portland, Oregon Ted and Joe are of like minds.

Greg Weik · Answer

It's not going to happen.

Even if it does, there will always be ways to make money. No need to worry about the sky falling.

Steve Morris · Answer

Live here and it's just not Portland.  Makes it easy for politicians to cover doing nothing by blaming rich people.

Worked great in pre-war Germany by blaming a certain religious group for the problems of the general population.

Sad how it speaks to the average IQ of people.

Since Ds own Congress and the Presidency, I'd think it'd be prime to shove stuff like that thru.  Only thing giving me hope is Obama had the same situation in 2009 and did nothing, but politicians are getting a lot more aggressive than then.

Steve Morris · Answer

"Why did no one care when about a dozen different investment vehicles, included some affecting real estate, were eliminated from 1031 exhanges back in 2018?"

'Cuz no one used them and there were alternatives?   The proposal would affect ALL 1031s.  The $400K limit would hit anyone selling something bigger than a duplex since the cap gains would be imputed as income.

Jeff S. · Answer

@Steve Morris agree something will happen. Not sure which is scarier the prospect of printing money or taxing those who have done well during corona. Either way we lose. Let daddy pull out the visa and make everyone happy.

@Steve B. listening to Blackrock CEO and he was nervous. Saying he thought going to about 27% corporate if money spent on infrastructure would be ok creating jobs. I think we know the Biden/Harris agenda is not so clear.

What ever happened to good old fashioned pain like Volcker putting rates to 20%. Printing money is the kinder softer way for the soft but not so kind types destroying our cities today.

Steve B. · Answer

@Jeff S.  “Tax the rich”  was the Democrat motto from the past.   There was a time in which the Democrats represented the working class and the Republicans represented the top 10%. Of earners.  This has completely reversed itself in the last 20 years.  Democrats will pay lip service to taxing the rich and ending capital gains, 1031’s etc.  to mollify the poor Bernie bros in their party but they aren’t actually  going to do it.  Ideology is still downstream of money and Biden and Co. aren’t  going to do something that hurts their power base (top 10%).  In summary the Democrats are about as serious on raising taxes on the rich as republicans are about cutting the deficient:  Not serious

Russell Brazil · Answer

Why did no one care when about a dozen different investment vehicles, included some affecting real estate, were eliminated from 1031 exhanges back in 2018?

Shannon Robnett · Answer

@Greg Weik I tend to agree with you on this.  There are plenty of "rich real estate investor" people on both sides of the aisle that with the super-slim majority that one party has right now it will make it very tough.  Besides, when did a politician actually do what they said they were going to do when they ran?

Jacob Wathen · Answer

@Jeff S. There is a chance that could happen. I believe Clinton had some retroactive tax changes during his presidency. I am hopeful that they will not do away with that or step up basis.

1031-endangered? Retroactive? Maybe next year, maybe now?

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