President Joe Biden's election has renewed the discussion as to whether 1031 tax deferred exchanges are once again in danger of being repealed or modified to limit its tax benefits.

Most supporters of 1031 exchanges expound on its benefit to the broader economy, as well as studies which show that 1031 exchanges are "revenue positive" to Federal and state treasuries.  While those arguments are valid, they are based on logic and reason in what is now a very political discussion.

Although there does not seem to be any record of Joe Biden specifically discussing 1031 exchanges, a senior campaign official for then candidate Biden, is quoted in a July 21, 2020 Bloomberg article explaining the plan to limit the use of 1031 exchanges for real estate investors with incomes over $400,000: "…. a Biden administration would take aim at so-called like-kind exchanges, which allow investors to defer paying taxes on the sale of real estate if the capital gains are reinvested in another property."

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