Biden’s CRE Tax Deduction Kill List Is BackApril 5, 2022 – Media Mention
Michael Wiener, a partner in the firm's Corporate, Finance & Securities Practice Group, shared his insight with GlobeSt.com in regards to newly proposed restrictions on CRE tax strategies. The Biden administration is currently seeking to close tax "loopholes" by restricting 1031 exchanges. The President and his team suggest that the rollback of 1031 will result in $68.1 billion over the next ten years in budget cuts. However, critics argue the 1031 proposal will affect real estate professionals and businesses negatively.
“There’s [another] thing worrisome about the 1031 proposal,” Michael Wiener, a partner in Greenberg Glusker’s corporate, finance and securities practice group, tells GlobeSt.com. That’s the 180-day rule for completing the transaction.
“It says that the proposal would be effective for exchanges completed after December 31, 2022,” Wiener says. “As you get into the second half of this year, people are going to say, ‘I might not have 180 days. I might have 170 days or 150.’ The 1031 change is a big deal.”
“Getting rid of carried interest would definitely be an issue, especially if you combine it with the elimination of 1031,” Wiener says.