Concern Over Capital Gains Taxes Is Fueling an End-of-Year Rush

Investment volumes are surging at the end of the year. Renewed confidence and a swift recovery following the pandemic are helping to fuel activity, but there is another reason that investors are motivated to sell: capital gains taxes. Concerns that the tax law could change—and specifically that capital gains taxes will increase—is pushing investors to sell properties before the clock strikes 2022.

“A lot of sellers aren’t sure what tax law is going to look like in 2022 because they keep moving the goal post,” Michael Fay, principal and managing director in Avison Young’s Miami office and chairman of U.S. capital markets, tells GlobeSt.com. “Sellers have said that they want to lock in a sale at 2021 as opposed to 2022, because there we are hearing that anything following 2022 could fall into a new category.”