(07-22-2020, 08:21 AM)mikesez Wrote:

(07-22-2020, 08:08 AM)StroudCrowd1 Wrote: Any real estate investors in support of Joe Biden or convinced they "hate" orange man should take a look at Biden's plan for the real estate industry. Getting rid of the 1031 exchange will simply make people hold on to their properties longer, and any tax benefits taken away from property owners/landlords will simply be passed on to the tenant via rent. Destructive and short sighted.

https://therealdeal.com/2020/07/21/biden...-insiders/

There are certainly too many loopholes in the income tax, and especially the capital gains tax.
Too many transactions take place with the sole motive of sheltering from taxes, none of this is productive, and only the accountants are happy about it.
This is the first I'm hearing of Biden's plan. I have no problem with treating real estate investment more like any other business. If you are trying to make money buying and selling and fixing up property, your profits should be taxed just like all other businesses.  The cost of goods would be what you paid for the property, what you paid for fixing it up and maintaining it, and your revenue would be rent or sales.  
It often works this way, but there are too many loopholes. Devil's in the details, of course.

If you are a flipper, you are already paying short term capital gains on your profits and getting boar hogged by Uncle Sam. The concept here is really no different than tariffs impacting the price of materials companies use to build products. At the end of the day, the additional cost gets passed on to the customer, or the tenant in this case. 

The 1031 exchange is just the start. Democrats want to also go after all deductions as well.

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