Real Estate Groups Warn Congress on Tax Changes Impacting Affordability

A coalition of real estate trade groups has urged Congress to maintain the current treatment of carried interest and capital gains taxes, arguing that changes could harm housing supply and affordability. They emphasize that the tax code should not limit rewards for risk-taking investors, pointing to the potential negative impact on over 11 million real estate partnerships if the preferential carried interest treatment is eliminated. Meanwhile, Caliber has launched a new 1031 Exchange program to provide accredited investors with tax-deferral opportunities through curated real estate investments, highlighting the importance of this strategy for portfolio diversification. Additionally, as the real estate market faces rising interest rates and costs, the 721 exchange is gaining traction among investors seeking to defer capital gains taxes while transitioning to passive investments. These developments illustrate the ongoing complexities and strategies within the real estate investment landscape amidst changing tax discussions and market conditions.