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President Biden’s tax plan stands to make a significant impact on everyday citizens and investors alike.
If passed, the plan would increase taxes on the top 1 percent of earners by 13 percent to 18 percent of after-tax income, and indirectly increase taxes for most other groups by 0.2 percent to 0.6 percent, according to the Committee for a Responsible Federal Budget, an independent, non-profit, bipartisan public-policy organization based in Washington, D.C.
But one proposal that could potentially rock the real estate industry, if passed, is the end to Section 1031 “like-kind” exchanges for investors with annual incomes of greater than $400,000.
1031 exchanges allow real estate investors to defer capital-gains taxes when they sell properties by directing the sale’s proceeds into new investments. Many investors conduct these exchanges on a continual basis, and while that means the tax continues to be deferred, it’s not as though it goes away altogether th
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Before the election, President-elect Joe Biden said he’d look to axe one of small businesses’ most valuable tax benefits. With Democrats taking Senate control, the risk is potentially heightened.
Fortunately, for those who own commercial real estate, eliminating the 1031 exchange probably won’t make Biden’s near-term agenda after all.
The 1031, also known as a like-kind exchange, benefits small business owners who want to sell their properties. It allows sellers to defer capital gains tax when their proceeds are reinvested into other investment properties.
Right now, the 1031 exchange is more important than ever. During the coronavirus-caused economic downturn, it has helped relieve the tax burden on those who are selling investment real estate that may be tied to struggling sectors such as hospitality. Investors who own other types of real estate, such as rental homes, apartments, retail centers, restaurants, bars, farms, and ranch lands may also use a 1031 exc
Our digital lives are driving a brick-and-mortar boom in data centers indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.
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The shift to digital work and play from home, hastened by the pandemic, has wreaked havoc on commercial real estate. But experts say it has also generated one surprising bright spot for the industry: data centers.
The growing reliance on cloud-based technology and the big, blocky buildings that house its hardware has created greater opportunities for developers and investors as businesses and consumers gobble up more data in a world that has become increasingly connected.
“Our houses are connected, our cars are connected, our streetlights and parking meters are connected, and every single one of those connections is passing data back and forth,” said Sean O’Hara, president of the exchange-traded funds division at Pacer Financial, an investment advisory firm in Malvern, Pennsylvania.
Data-centre development accelerates as our lives become increasingly digital theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.