President Biden‘s New 1031 Tax Plan

Aloha Dear Friends,

I have done a ton of research on this subject, and I hope you enjoy my blog.

President Joe Biden’s new 1031 tax plan and how will this will affect the real estate investing game. Proposals are being set forth to help the economy with what is known as the “American Families Plan” to address education and child care. And a way to do this is to increase tax.

The Biden proposal would illuminate the right to defer certain tax gains on property by way of a 1031 exchange for profits over $500,000. There is no date set yet when this plan will be passed or if it will be passed at all.

What is a 1031 Exchange?

Deferred exchange is basically a way for real estate investors to avoid paying capital gains taxes on their profits. This is really only for your investment properties and not your primary residence or your specific property that you are personally living in.

A 1031 exchange is basically when you go to sell a property can you make profit on that specific property; any profit that you make you have to pay capital gains taxes at your normal tax rate, and for many people, that is a lot of money. If someone wants to re-invest in real estate, there’s a way that you can rollover that profit into another property of “like kind” and completely avoid any sort of taxes whatsoever.

Rules are when you go to sell your property you essentially have 45 days to identify another property that you are going to buy and gives you a very short timeframe for when you sell to when you have to buy again in order to avoid those capital gain taxes.

You are able to roll those profits over and continue to do that over and over again.
The really cool thing is, if you plan on holding properties and passing them down to your kids, it actually resets.

You don’t have to pay profits whatsoever once you pass away, and your kids are not stuck with the burden of having to pay all your capital gains taxes. It actually gets wiped away once you pass away, great incentive.

This new tax plan could cause a demand in single-family homes and an increase in the movement of the market and could force people to hold their property’s a little bit longer.

We are living in interesting times, and let’s hope all the new plans will actually help people as a whole.

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Satori Ebedes
808 333 2127

About the Author

Satori Ebedes

Satori Ebedes is a REALTOR Salesperson with Hawai'i Life. Excellence is the result of caring more than others think is wise, risking more than others think is safe, dreaming more than others think is practical and expecting more than others think is possible. Satori understands that real estate is more than just a transaction, it’s a life changing experience here in Hawaii. She takes great pride in the relationships she builds and always works persistently on clients behalf to assist them achieve their real estate goals through her exceptional and personalized service. With two decades of experience, Satori specialized in the high end luxury real estate market in South Florida, property management and vacation rentals. Satori migrated west from South Africa over 20 year ago to South Florida, through Sedona and ultimately settled down on the Big Island of Hawaii, where she fell in love with the “Aloha Spirit”. She has also travelled to over 15 countries and brings a global perspective that guides her to unite the gap in the diverse real estate market in Hawaii. On her journey she has discovered how important it is to bridge a healthy lifestyle by living in a beautiful environment. Satori is focused on luxury lifestyle properties and her motto is “One Life”. You can email me at or via phone at (808) 333-2127.

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