What changes are in the offing for the real estate market after President-Elect Joe Biden is sworn-in as President on Wednesday, January 20, 2021?
Of course as with any topic as broad as this one, there are no shortages of opinions from pundits, industry players and the ancillary vendors (i.e. law firms) who work on transactions.
Hallmark Abstract Service is happy to be able to provide to our readers insights from a law firm known in the industry as a thought leader concerning all topics real estate, Venable LLP. In addition, at the end of the comments we will provide the link to a webinar they recently conducted about real estate in a post-election world.
Venable LLP Post-Election Real Estate Market Summary
While control of the Senate is yet to be determined, Joe Biden’s victory in the presidential race signals potential changes for the real estate industry. In this installment of our post-election webinar series, members of our esteemed Real Estate Group examined President-Elect Biden’s policy goals and his corporate and individual tax reform proposals, noting that regardless of the outcome of the two outstanding Senate races in Georgia, narrow congressional majorities make sweeping changes unlikely in the near term.
Among the key areas the group addressed were the Biden administration’s plans to increase the corporate tax rate, adjust international taxes, and address tax loopholes within the real estate industry, including Section 1031 exchanges and depreciation rules; the group pointed out that closing either of these loopholes could have a serious impact on the ability of real estate entrepreneurs to reduce their tax liability. The panelists also examined the incoming administration’s proposal to raise the Social Security cap, which could have an impact on high earners.
As for individual tax reforms that will affect real estate, the group discussed Biden’s pledge to reverse the Tax Cuts and Job Act tax cuts for the wealthy, reform opportunity zone programs, eliminate capital gains loopholes, and promote estate tax reform. They noted that capital gains and estate tax reforms will be closely monitored by the real estate industry, along with a list of individual tax reforms that touch on deductions, renewable energy tax credits, and various wealth-building tax provisions, among others. Finally, the group discussed various proposals to change taxation on capital gains, including the Biden Plan, the Wyden Plan, and the Warren Plan. It remains to be seen which of these will be implemented and what the exact impact will be.
Watch the entire webinar using this link.
Hallmark Abstract, You Buy, We Protect!
Follow Hallmark Abstract Service on social media