Congressional leaders released a long-awaited framework Thursday for President Joe Biden’s signature Build Back Better plan, proposing a top-line price tag of $1.75 trillion which includes investments in affordable housing and down-payment assistance and spares real estate investment from the most feared taxes.
The plan is paid for with new taxes on high-income individuals and businesses, but the most feared taxes on real estate investment were excluded.
“Some of the earlier tax proposals floated would have devastated the real estate sector, which makes up nearly one-fifth of the entire economy,” McGahn says. “This framework has no 1031 like-kind exchange limits, no capital gains tax increases, no change in step-up in basis, no tax on unrealized capital gains, no increased estate tax, no carried-interest provisions, and no 199A limits. The tax provision of this framework is very positive for consumers, property owners, and the real estate economy.”
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