RENT Magazine Q2 '23

In 2021, the White House proposed several major changes to capital gains tax deferral, including: III

• Limiting 1031 tax deferral to $500k of gains per year

• Limiting the “step-up in cost basis” at death to $1,000,000 of gain

• Eliminating the ability to exchange real estate for partnership interests without recognizing gain

Fortunately for rental housing providers, none of these ideas became law in the last Congress. Nevertheless, some politicians continue to characterize basic principles like step-up in basis as a “loophole”.

Any tax benefit that requires you to die is not a loophole

Version 2.0 of the White House’s budget proposals are asking Congress to: IV 2023 WHITE HOUSE TAX PROPOSALS Click here for a summary of important tax law changes for landlords in 2023.

• Eliminate—not merely limit—1031 exchanges

• Eliminate—not merely limit—the step-up in cost basis at death

• Increase the top Obamacare tax rate from 3.8% to 5%

• Increase the top capital-gains tax rate from 20% to 39.6%


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