Cover art for podcast Real Estate News

Real Estate News

155 EpisodesProduced by Jim ParkerWebsite

.....Welcome to my Podcasts.....I help people buy and sell houses. I also share information, news, and topics about the real estate industry; how they may affect the metro Atlanta real estate market; pose problems and solutions; and address issues that may influence decisions to buy or sell… read more


Eliminate the 1031 tax exchange and you solve the affordable housing problem

What is a 1031 tax exchange?:

According to the Internal Revenue Service, whenever you sell business or investment real estate property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.  The exchange can include like-kind property exclusively or it can include like-kind property along with cash, liabilities and property that are not like-kind. Both properties must be similar enough to qualify as "like-kind." Like-kind property is property of the same nature, character or class. Quality or grade does not matter. Most real estate will be like-kind to other real estate.

Many large real estate residential property owners buy and sell large portfolios of units don't paying any taxes on the gain and wind up merging portfolios and defering taxes indefinitely.

So, do you think this tax law will ever be eliminated?  Probably not.

Reasons:  This probably will never will be done for two basic reasons: (1) hedge funds and other large multi-family and single-family ownership interests pay alot of money to both Democrat and Republican politicians' campaigns, and (2) these same groups have heavy lobbying efforts to put pressure on Congress to continue the tax deferment incentive to "avoid de-stabilization of rental housing in the US" and some other valid investment reasons.

Solution:  Through presidential executive order,  immediately eliminate any current or immediately preceding 1031 tax exchange deferment of capital gains for those owners (with a controlling interest of at least 25%) of real estate with more than 100 units of either multi family or single family residential units....unless...within 90 days they offer 20% of their inventory and within 180 days maintain at least 90% of that offered inventory as “workforce housing” for those whose income falls at or below US median household income (not the prevailing rate of their individual market).  For example, a multi-family complex of 250 apartments must open up 50 of those apartments within 90 days of law as "affordable housing" options and lease at least 45 (i.e., 90%) within 180 days of effective date of law.

What may this action accomplish?

(1) It will immediately open tens of thousands of residence up to those who can least afford it.

(2) it will stop the games that hedge funds and large property owners have of constantly trading higher and higher priced residential units tax free through the 1031 tax exchange "loophole".

(3) Tax revenue from those institutions who don't comply will fund subsidies to the affordable housing efforts in cities and states.

(4) Modify the total ROI on portfolios in the short run, but over the long run, portfolio managers will compensate through streamlined property maintenance and higher rental rates for those 80% who don't qualify for affordable housing.

Update (5-4-2021 - How Biden’s real estate tax plan may hit smaller property investors

Update (5-4-2021 - Biden Targets $41 Billion Tax Break for Rich Real Estate Investors

Educational emoji reaction


Interesting emoji reaction


Funny emoji reaction


Agree emoji reaction


Love emoji reaction


Wow emoji reaction


Are you the creator of this podcast?

Verify your account

and pick the featured episodes for your show.

Listen to Real Estate News


A free podcast app for iPhone and Android

  • User-created playlists and collections
  • Download episodes while on WiFi to listen without using mobile data
  • Stream podcast episodes without waiting for a download
  • Queue episodes to create a personal continuous playlist
RadioPublic on iOS and Android
Or by RSS
RSS feed

Connect with listeners

Podcasters use the RadioPublic listener relationship platform to build lasting connections with fans

Yes, let's begin connecting
Browser window

Find new listeners

  • A dedicated website for your podcast
  • Web embed players designed to convert visitors to listeners in the RadioPublic apps for iPhone and Android
Clicking mouse cursor

Understand your audience

  • Capture listener activity with affinity scores
  • Measure your promotional campaigns and integrate with Google and Facebook analytics
Graph of increasing value

Engage your fanbase

  • Deliver timely Calls To Action, including email acquistion for your mailing list
  • Share exactly the right moment in an episode via text, email, and social media
Icon of cellphone with money

Make money

  • Tip and transfer funds directly to podcastsers
  • Earn money for qualified plays in the RadioPublic apps with Paid Listens