Should You Sell Investment Real Estate Now?

That’s what many people are asking. But before you do anything, understand that there’s no telling what will come of President Biden’s tax proposals with a divided Congress, and you do have some interesting options in the meantime.

I’ve been a professional real estate investor since prior to the Great Financial Crisis and have seen pretty much everything: Markets that go up and down, trends that fade away versus take hold and stay and, certainly, changes in political leadership that produce new tax policies.

Now we have President Biden in the White House and are seeing his proclamations and policy positions. Let’s look objectively at indications from the administration and what could happen this year with potential implications for investment real estate.

First things first, the economy at the moment is on fire. U.S. GDP may top 6% this year, according to The Conference Board. To be sure, the recovery is uneven and Covid remains a serious factor on a global basis. But I note the macroeconomy because at my firm, we believe there’s no better indicator of potential demand for investment real estate. When the economy is expanding, demand increases, generally speaking, for income properties occupied by business users and multifamily properties that provide rental housing to people.

Watch for Changes to Capital Gains Taxes and 1031 Exchanges

In terms of tax policy, now on the table from the Biden administration are some proposals with the potential to affect investment in real estate: an increase in the capital gains tax rate and limits on the use of 1031 like-kind exchanges. (Basically, 1031 exchanges allow property investors to defer capital gains and other tax on investment gains when they reinvest the proceeds in other investment properties.) Biden has proposed raising the capital gains tax rate to 39.6% for people making more than $1 million a year.

Read More…

About Skip Force LLC.: Skip Force is a SaaS company based in Austin, TX. Founded in August of 2019, Skip Force has developed solutions, for real estate investors and resellers, to streamline the skip tracing process to effectively close leads.

Related News

Real Estate Strategy 2 Years Into The Pandemic
Real Estate Strategy 2 Years Into The Pandemic

💥Real Estate Strategy 2 Years Into The Pandemic💥 Real Estate Strategy 2 Years Into The Pandemic  – COVID-19 has changed the world as we know it. Everything from where we live and work to how we value and spend our time and interact with each other has dramatically shifted in the face of the challenges […]

Simple App Makes Real Estate Investing Less Confusing
Simple App Makes Real Estate Investing Less Confusing

Simple App Makes Real Estate Investing Less Confusing Simple App Makes Real Estate Investing Less Confusing – Many seem to be under the belief that real estate investing is only a game rich people play. It takes a lot of money to buy a single piece of property, after all. It’s also a relatively slow […]

Investing in Real Estate without owning a single property
How to Invest in Real Estate Without Owning a Single Property

Invest in Real Estate Without Owning a Single Property Invest in Real Estate Without Owning a Single Property – This REIT nears a quarter century of market-beating returns, and that could be just the start. Real estate has long been a great way for investors to build wealth. That wealth can come both from the […]