Biden to Abolish Capital-gains Tax Loophole for Real Estate Investors

Source: MPA — 

President Biden is pushing to close a tax loophole that has allowed real estate investors to defer paying capital gains on property sales as part of his $1.8 trillion spending package for new social programs.

The Biden Administration said that the proposed economic plan would eliminate a tax break, known as 1031 exchanges, on real estate profits of more than $500,000. The tax treatment enables property investors to reinvest the proceeds of sales into future purchases without paying capital gains taxes on profits.