Along with raising the tax rate on capital gains for households earning more than $1 million and eliminating a tax break for heirs who inherit property, Biden also proposed a change to the so-called Section 1031 exchange.
A Section 1031 or like-kind exchange allows real estate investors to avoid capital-gains and depreciation-recapture taxes when they use the proceeds from one property sale to buy another property within 180 days. Biden would cap this tax break to when capital gains are no more than $500,000.