1031 Exchange Series: Biden’s American Families Plan And 1031
Biden’s American Families Plan and 1031 In recent months, President Biden introduced the American Families Plan with the goal of “making education more affordable and expanding opportunity, providing economic security for families, and expanding tax credits that help workers and families.” Along with reversing various tax cuts introduced in the 2017 Tax Cuts and Jobs Act, one of the more notable propositions is limiting the 100-year-old provision of the Internal Revenue Code (IRC), the ‘like-kind exchange’ provision, allowing for deferment of capital gains and recapture taxes on properties held for investment. The Biden Administration is not the first to attempt to limit 1031 exchanges. Donald Trump’s Tax Cuts and Jobs Act ended personal property exchanges back in 2017, so currently like-kind exchanges apply exclusively to commercial real estate. The new administration argues Section 1031 of the IRC only benefits the wealthy and wants to get rid of the provision Donald Trump and thous