President Joe Biden is calling on Congress for a tax hike on real estate investors.
The Biden administration is asking for higher taxes on real estate transactions with gains of more than $500,000. The president says he wants to tax wealthy Americans to pay for childcare and paid family leave. However, real estate experts like Michael Weaster say the tax hike would put a strain on smaller investors.
“The 1031 tax deferred exchanges that I’ve seen recently are usually investors who’ve invested in a duplex, triplex. They’ve done that as part of their retirement, and they want to sell that to move on to another property,” Weaster, with the Graham and Company Realty Group, explained.
The proposal could also hurt small businesses looking to exchange or rent property. Financial experts are already concerned about the administration's call for a tax increase on capital gains.