Donna Genie (YouTube video) warns real estate investors that President Biden's proposed 2025 tax changes would eliminate 1031 exchanges for real estate. She frames the repeal as closing a longstanding tax deferral "loophole"—what she calls an interest-free loan from the government—and argues this would raise costs for real estate investors and businesses by removing a key reinvestment strategy.
Watch out, real estate investors. They're coming to get you. Stay tuned to learn about the last great tax break in real estate investing that may go away in 2025. Typically, we don't talk about taxes changing at this point in the year, but President Biden has put out his proposed changes for the 2025 tax year and he's got some doozies in there. The big change on the real estate side has to do with 1031 exchanges. If you recall, in the past couple of years, they've done away with 1031 exchanges for just about everything except real estate. Well, now real estate's on the chopping block, too. President Biden has decided that this is the last known indefinite interest free loan from the government and he wants to close this loophole. I see this as a big problem for real estate investors all over because this is a huge strategy that allows them to reinvest into more real estate business owners. This affects you just as much as anybody else. When the cost of real estate goes up, so does the cost of doing business.
