CRE Investors, Developers See Risk Everywhere In Biden Tax Proposal
April 28, 2021 | Kerri Panchuk | Bisnow Dallas-Fort Worth
Commercial real estate developers and investors hit the panic button Wednesday after President Joe Biden introduced a $1.8 trillion tax-and-spend plan that offsets its price tag by relying heavily on taxing commercial real estate transactions.
“Preposterous,” Dallas developer Dreien Opportunity Partners CEO Sam Ware said of the plan. “[It’s] not thought out [and] kills the jobmakers and risk-takers.”
Biden’s American Families Plan proposes an end to tax breaks received as part of 1031 exchanges (or in-kind real estate transactions) when capital gains from those deals go beyond the $500K mark. Under the current 1031 paradigm, investors are allowed to defer capital gains on property sales by immediately pouring their proceeds into acquiring other properties.
