Danger Lurking in Biden Plan to Eliminate or Cap 1031s

The strength and resilience of the commercial real estate market has been tested many times over the past 100 years — never more so than during the pandemic, which shuttered hundreds of shopping malls, retail centers and restaurants. The fallout continues with hotels and office buildings, as virtual meetings are replacing business travel, and many people continue to work from home exclusively. 

As every state in the nation, Florida especially, begins to creep toward an economic rebound, commercial real estate must again play an essential role in the recovery. The Biden Administration plan to eliminate the deferral of taxes on property gains over $500,000 from like-kind exchanges, granted under Internal Revenue Code Section 1031, will cripple commercial redevelopment at a time when our communities need that investment more than ever.