Biden Targets $41 Billion Tax Break for Real Estate Investors

Joe Biden is taking aim at real estate investors used to buying and selling properties without having to pay capital gains taxes.

The U.S. president’s new economic plan calls for abolishing the right to defer certain tax payments on property-investment gains of over $500,000, part of a broader effort to raise taxes on the rich to pay for the expansion of services including free preschool to less-wealthy Americans.

Known as a like-kind or “1031” exchange, the perk allows property investors to roll the proceeds of real estate sales into future purchases without paying capital gains taxes on profits. This deferral ...