New Biden Capital Tax Gains on 1031

[Maria Amaro]

Biden just announced a proposal to cap tax benefits for 1031 at 500k. How is this going to affect the market? Will investors hold on to their properties longer? Will that mean less inventory on the market? 

[Dave Foster]

@Maria Amaro,  If that was in his speech tonight that's interesting and will be a total non-event.  The average sales price of 1031 property was around $300K from some research we did a little over a  year ago.  $500K profit on 1031 is not the norm.  So I expect it will be business as usual for most. 

But until it runs the gauntlet of congress it's just one more campaign promise.  But does illustrate what Gideon Tucker said, "No ones person, property, or liberty are safe while congress is in session."