Overview
An essential tool in the rebuilding of our American economy is at serious risk as part of the $1.8 trillion American Families Plan being considered in Washington – and the damage will be felt in every state, city and town still reeling from the ravages of COVID-19.
For the last 100 years, like-kind exchanges, which allow investors to defer taxes on the sale of a property if the proceeds are reinvested in a new property have been a cornerstone of the U.S. commercial real estate market, generating economic benefits on every level which far exceed the amount of taxes deferred. The $1.8 trillion plan presented last month by President Joe Biden proposes to cap the amount of gains that can be deferred at $500,000. Lisa Kleiner Wood explains how this cap is a recipe for economic stagnation in her article, “Capping 1031 Exchanges Would Cripple Wisconsin’s Commercial Real Estate Economy and Farmers.”
