1031 Elimination: Potentially `Devastating` For Multifamily Investment With No Upside
The multifamily space survived the 2020 coronavirus pandemic mostly unscathed despite fears over tenants` ability to pay. That has boosted its appeal as an investment target, but a provision in President Joe Biden`s tax plan could stymie deal flow and could even trickle down to fewer renovations to older properties and a deterioration of the housing stock.

The White House has proposed a tax and spending plan that would end tax deferments on most 1031 exchange transactions effective Dec. 31, 2021.

A study from Ernst & Young estimates the 1031 exchange program drives $4.4B in investments and related consumer spending, and firms participating in or supplying like-kind deals support 568,000 American jobs and $27.5B in wages and benefits. All told, E&Y estimates the existing 1031 exchange rules generate $55.3B in economic impact...

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RSK:P A lot of mom and pop property owners could also suffer from this for their retirement, not just the elite 1%.



- - Volume: 9 - WEEK: 24 Date: 6/8/2021 7:53:42 AM -