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How Biden’s real estate tax plan may hit smaller property investors
President Joe Biden wants higher taxes on real estate transactions with gains over $500,000. But the proposal may affect more people than wealthy investors.
Business
Real estate investors may soon pay more taxes on high-dollar transactions.
President Joe Biden is asking for higher taxes on real estate transactions with gains of more than $500,000. The tax plan aims to help cover the $1.8 trillion American Families Plan, which pumps money into child care, paid family leave and education programs.
However, financial experts say the tax hike may also put a strain on smaller investors.
The strategy on the chopping block — so-called like-kind or 1031 exchanges — allows investors to defer paying taxes on real estate by rolling profits into their next property.