1031 exchanges let investors expand their portfolios while deferring capital gains taxes. You can delay capital gains taxes for your sold assets instead of paying them upfront, which can allow for increased financial flexibility. President Biden’s proposed budget for 2024 places significant restrictions on 1031 exchanges that could impact the market. Preserve 1031 exchanges by filling out 1031 Crowdfunding’s form below.
President Biden’s Budget for the Fiscal Year 2024 proposes a change to 1031 exchanges. The new budget includes a capped deferral for all 1031 exchanges, limiting the amount of capital gains taxes that investors can defer after qualifying exchanges. Under the new policy, taxpayers could only defer up to $500,000 each year from 1031 exchanges. Investors must pay all related capital gains taxes if they surpass this amount.
This proposal seeks to increase federal revenue by requiring investors to pay more taxes if their real estate transactions exceed a certain amount. President Biden wants to reduce budget deficits and ensure 1031 exchanges don’t disproportionately assist the wealthy.
However, the proposed 1031 Exchange changes can significantly impact the overall economy. It could cause complications like:
If investors avoid 1031 exchanges, they could lose potential benefits like portfolio diversification and improved purchasing power. The real estate market could also see less activity, which influences revenue levels.
You can help preserve 1031 exchanges by communicating with Congress. By informing them of your stance against caps on 1031 exchanges, you can encourage them to pass legislation to protect these exchanges. Bringing the issue to their attention keeps them informed of public opinion.
You can voice your concerns to Congress by sending them direct messages. 1031 Crowdfunding has a campaign to preserve 1031 exchanges that facilitates communication to Congress. After you submit your street address and ZIP code, we submit a message to your representatives. We also find further outreach options that let you get involved in other ways.
If you want to learn more about 1031 exchanges or get started with your own transaction, register for an investor account with 1031 Crowdfunding today.
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