Currently, as of August 2021, a 1031 exchange allows a taxpayer to avoid paying capital gains taxes when selling an investment property by reinvesting the proceeds from the sale, within specific parameters, into another property(s). Up until now, this part of the tax code has been helpful to those selling and buying real estate as they are not burdened by the taxes on something they do not have any cash flow from since they rolled over those funds.
Like the Lifetime Gift Tax Exemption, the 1031 Exchange is part of the White House wishes list of reform to fund various government programs. Right now, there is no dollar limitation in the 1031 guidelines, it just has to be real estate, and you have to follow the specific guidelines and parameters outlined in the IRS code. However, in the White House’s wish list, they propose capping the amount of gain you can roll over into a new property tax-free at $500,000.00.
Listen in to this episode of the “What’s Up with Biden’s Proposed Tax Changes,” as Kevin Gilbreath, a tax partner with Crowe, and our very own succession planner, Jeff Bannon, shares the impact of the proposed change and how to take advantage of today’s environment.
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As you listen to this episode you will walk away with key takeaways and will realize you will want more. Leverage our Succession Readiness Survey A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook impacting business value, growth, lifestyle, and ultimately achieving your vision.
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