1031 Could be a ‘Thing of the Past’
On February 22, Mainebiz published an article, “Is 1031 all done? An investment tool, commercial real estate boon faces elimination,” discussing how the 1031 real estate exchange tax benefit allows investors to defer capital gains tax from sales by investing into similar properties. This particular tax deferment has really been a benefit for commercial real estate, but now President Joe Biden’s tax plan proposes that 1032s are eliminated from investors that have incomes higher than $400,000.
Tax attorney Cheryl Johnson is quoted in the article: “The 1031 tax exchange was created in 1921, and originally used for types of exchanges where cash wasn’t readily available.” Cheryl states that it's a good thing and encourages people to stay invested.
To read the full article on Mainebiz.com, click here.