I don't understand this logic. If 1031 already makes taxes moot why would this do anything? This proposal rewards investors and speculators in the market. They either need to adjust their rental rates (downward) or default on their debt. Real estate markets are slow. We will see much more inventory as builders catch up. This scenario is preferable to a government handout.
It would be different than a 1031 exchange in that it would get investors out of the market. --1031 exchanges perpetuate investors in the market. In this proposal, investors would have to sell their real estate to homeowners. That's the key -- trading investor-owned real estate for homeowner-occupied real estate, one for one. Yes, investors largely avoid paying taxes through 1031 exchanges, so this would be sort of revenue neutral for the government.
I don't understand this logic. If 1031 already makes taxes moot why would this do anything? This proposal rewards investors and speculators in the market. They either need to adjust their rental rates (downward) or default on their debt. Real estate markets are slow. We will see much more inventory as builders catch up. This scenario is preferable to a government handout.
It would be different than a 1031 exchange in that it would get investors out of the market. --1031 exchanges perpetuate investors in the market. In this proposal, investors would have to sell their real estate to homeowners. That's the key -- trading investor-owned real estate for homeowner-occupied real estate, one for one. Yes, investors largely avoid paying taxes through 1031 exchanges, so this would be sort of revenue neutral for the government.
Your idea sounds interesting. You need to take it on the road and get "the powers that be" in Washington, D.C. to consider it.
Thanks Jim! Yes, I agree, that’s the next step.