May 18, 2021
Biden Tax Proposal Would Squeeze Apartment-Building Owners

The Biden administration’s plan to limit a longstanding property-tax break could disrupt the business of investing in apartment buildings, discouraging both...

Biden Tax Proposal Would Squeeze Apartment-Building Owners

Property investors view any limits on their favorable tax treatment as a new threat to a business already upended by the pandemic

May 11, 2021 | Will Parker | Wall Street Journal

The Biden administration’s plan to limit a longstanding property-tax break could disrupt the business of investing in apartment buildings, discouraging both amateur and professional investors who helped fuel record multifamily sales.

The tax treatment enables investors to defer capital-gains taxes if they invest profits from a real-estate sale into another property. It is used to buy and sell most types of real estate, but it has been a primary source of capital for apartment-building investors. Multifamily sales enjoyed their biggest year ever in 2019, notching more than $184 billion of properties sold.

Karlin Conklin, principal of Investors Management Group, a company that purchases and renovates aging apartment complexes, said about one-third of the capital that her firm raises for acquisitions comes from these like-kind transactions, known as 1031 exchanges. Owing capital-gains taxes could mean less investment in existing affordable housing, she said.

Read Full Article

Recent

Most Popular

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 10-3-2023 Blue Vault wishes to acknowledge and apologize for the delay in publishing some Q2 2023 NTR Individual Performance Pages (IPPs) as well as the full review. We recently added additional reporting metrics to our IPPs, and that, combined with coverage of all share classes and some additional…
Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 9-25-2023 Blue Vault has published the Q2 2023 Nontraded BDC Industry Review as well as Individual Performance Report and Limited Operations pages for the following offerings (newly published pages in bold font): Nontraded REITS American Healthcare REIT Q2 2023 Apollo Realty Income Solutions Q2 2023 (limited operations) Ares…

Explore

Blue Vault Logo
Don’t miss alts news
and educational events

Subscribe Now