Anyone buying Real Estate MUST WATCH before! | Joe Biden 1031 Tax Deferred Exchange

Anyone buying Real Estate MUST WATCH before! | Joe Biden 1031 Tax Deferred Exchange
Buying Real Estate



Anyone buying Real Estate MUST WATCH before!

LIKE COMMENT SUB PLS :))

Biden is trying to kill real estate

Not political

Targeting 1031 tax deferred exchange
Included in infrastructure package
It will be limited to, any investment gain under 500k

What is the 1031 exchange?
You can roll over gains on real estate to the next property and defer tax
Let’s say you bought a home for 100k and it went up to 200k and you sold
Rather than being taxed on the 100k profit you can put it into a new property and not be taxed.
Someone will hold the money between
You can literally never pay taxes by always exchanging
When you die you still won’t pay taxes
The stepped up tax basis allows you to give your real estate to kids and STILL not be taxed

Large multi family property, you are taxed on anything over 500k

What will this do to this crazy real estate market we are in?

See it from the investor point of view – they are the ones controlling the market to some extent
As an investor, you want to take advantage of the 1031 advantage

With these large scale investors, they might rethink going for the big properties
Bc the gains on a $20 million apartment complex at 10% would be $2 million

This means you will only be able to 1031 exchange 500k on it, leaving $1.5 million up for capital gains tax. With massive capital gains taxes for these bigger investors. 40-57%

People without a big income of over $1 million would still be taxed at this crazy rate
NO LONG TERM CAPITAL GAINS plus no 1031

What will happen?

Instead of buying large buildings GO FOR THE SMALLER ONES!
Places where you will make 500k per house
Buy in volume of the small houses.
Mainly single family houses

But the single family houses are at all time lows?!

YEA but now it is going to get even harder for first time home buyers
Inflate prices even higher and in effect mess it up

Makes more sense for investors to buy 400-500k homes and wait for them to double.
They would buy more frequently and consistantly
Still take tax advantage but have a massive portfolio in concerns to volume of properties

Sell off oldest 2-4 properties and roll it over

What is the 1031 plan really going to do?

Funnel EVERYONES money into single family homes/condos
People want the 1031 tax deferred
Big slap in the face to multi family investors

Who will benefit in 1031 exchange?
Corporations benefit from 1031 – $2.3 billion
Small investors/ individuals who own maybe a couple of properties – $ 5.7 billion

Small landlord loses the most!

Biden is coming for EVERY investment, corporate tax rate, capital gains you name it

Funneling all investors into single family homes. Hurting the first time home buyers
WHICH IS THE #1 WEALTH BUILDER IN AMERICA

If you are going to abolish the 1031 get rid of it all
Not up to 500k
At least it will be evened off

Anyone buying Real Estate MUST WATCH before!Anyone buying Real Estate MUST WATCH before!
Anyone buying Real Estate MUST WATCH before!Anyone buying Real Estate MUST WATCH before!

#realestate #1031 #JoeBiden

source

Articles You May Like

Episode 91: Thoughtful Property Management with Mark Dolfini of Landlord Coach
How to SURVIVE A MINEFIELD when you are working with NEW CONSTRUCTION BUILDERS 🏡💥
Buying Second Property Singapore with No ABSD?
11 years OLD Used house for sale in Hyderabad | Fully Furnished Chance Property
Jake and Gino Introduce the Concept of the 100 Year Real Estate Investor

Leave a Reply

Your email address will not be published. Required fields are marked *