The election of Joe Biden to serve as the U.S.’s 46th president portends future tax increases for high-net-worth investors and estates as well as a potential loss of the preferential tax treatment of 1031 exchanges of like-kind real property. However, the likelihood that any changes to existing tax laws will occur in the next two years depends largely on the results of the Jan. 5 runoff elections in Georgia.
If Georgia voters keep even one of its two senators up for reelection, Republicans will maintain control of the Senate, preserving a divided Congress and reducing the probability that any meaningful tax legislature will be enacted until 2023 at the earliest. With this in mind, it is critical that real estate investors considering a sale of real property do so before the end of 2020 to take advantage of existing law and defer capital gains taxes if they put the money from the sale into another property. Similarly, investors in the midst of a 1031 exchange should work closely with their real estate advisors to determine all of the options available to them.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email email@example.com.