Biden Economic Plan Targets 1031 Exchanges

Tax breaks for 1031 like-kind exchanges would be capped under a wide-ranging economic plan proposed by President Biden.

On Wednesday, Biden introduced the $1.8 trillion American Families Plan. The package would include:

  • Two years of free community college, universal preschool, and child-care assistance
  • National paid family and medical leave
  • Expanded nutrition assistance
  • Extended child, earned income, and dependent care tax credits
  • To pay for the package, Biden would end the real estate tax break when investors exchange property for gains above $500,000.

In March, ALTA joined 30 other organizations in letters to Congressional leaders and U.S. Secretary of the Treasury Janet Yellen explaining the importance of 1031 like-kind exchanges.

The letter outlines how 1031 exchanges support jobs and investment, healthy real estate markets, and important social and environmental objectives, such as the preservation of family-owned farms and ranches and the conservation of land for the benefit of the public and future generations. Like-kind exchanges under section 1031 of the tax code allow businesses to grow organically, with less unsustainable debt, by reinvesting gains on a tax-deferred basis in new and productive assets. In this way, like-kind exchanges create a ladder of economic opportunity for minority-, veteran- and women-owned businesses and cash-poor entrepreneurs that may lack access to traditional sources of financing.

Limiting section 1031 will have a dramatic negative impact on these numbers. You can help. Tell Congress to keep 1031 Exchanges. Learn more at and click on the button below to send an electronic letter to Congress. Every letter makes a difference!

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