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Eastman & Smith Real Estate Chair Shares Insights on Impact of Raising Capital Gains Tax on CRE
GlobeSt.com interviewed Eastman & Smith member Scott A. Johnson for its article regarding the impact the White House’s tentative proposal to raise the capital gains tax and potentially end the 1031 exchange tax break may have on the commercial real estate industry.
According to Mr. Johnson, “If a property is cash flowing, and has positive equity, an investor will be likely to hold in hopes that the capital gains rate is reduced in the future.” Stopping the 1031 deferral also “would further encourage an investor to hold real estate investments in hopes that the capital gains rate is reduced by a future administration.”
Mr. Johnson practices in the areas of transactional real estate, business related matters, real estate related litigation and intellectual property law.