1031 exchange changes

[gooddog]

Not sure where to put this thread, so here it is.


A quick FYI



There is a proposal to change existing 1031 exchange rules. Having done a number of 1031 exchanges, I'm on the short list to get notified by a couple of different qualified agents. The emails have stated that should the proposal pass, 1031 exchanges would be limited to the first 500k of gain. If you have more than 500k of gain, it would be taxed as either capital gains or regular income tax based on your AGI. This still leaves 500k to carry over to a new property, which is workable for those dealing in smaller transactions.



With the number of people on these forums who may be thinking of selling real estate assets due to retirement, it may be worth speaking with a 1031 company before even considering listing a property.



Of course the 1031 agents are wanting people to call their respective reps to say 'no' to these changes.


Hope this is of some help to somebody.

 

[Letj]

I did one exchange this year and deferred some gains through an opportunity zone fund. For the rest I sucked it up and paid taxes. It was a huge chunk but I didn’t want to buy more of the over inflated properties plus it is difficult to find a replacement with the 45 days given the current real estate market.