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Biden looks to end like-kind exchange rule used for over 100 years - YouTube
Channel: Fox Business
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reports this morning president biden
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will be targeting a special tax break
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that helped donald trump amass his
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fortune
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now currently the 1031 like-kind
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exchange rule allows investors to avoid
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capital tax gains
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if proceeds from one cell of an asset is
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used to purchase a very similar asset
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now the rule
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it's pretty old original originally
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started over a hundred years ago to help
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family farmers now
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it's used by major property developers
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joining me now is the chairman and ceo
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of people the people's corporation
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don peebles and don listen i'm assuming
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you've taken advantage of this 1031.
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uh if it's gone how much does it hurt
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not just real estate development but
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just
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regular people trying to you know not
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the mega guys like you but just regular
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folks
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trying to invest in real estate well i
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think that it hurts the smaller investor
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much more so
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because they then have to reinvest their
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capital in the next real estate
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transaction with after-tax
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dollars as opposed to exchanging into
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another property and scaling up and
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being able to
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leverage the value of their prior assets
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and
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i think that more importantly the
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american homeowner
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should get the benefit of this which
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they do not and if the democrats do want
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to make a more fair
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tax system why not let the average
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homeowner
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who's in a starter home trade and do a
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10 31 to go to the next home and then
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the one after that
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so i think that they are misguided with
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trying to take this away
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um and uh and i think they should expand
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it actually
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yeah oh wow that's amazing don you know
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i i really i hate to say this but i feel
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like the idea that
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president trump used it to make a lot of
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money is one of the driving forces on
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this thing
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yeah that's unfortunate by the way
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because i mean look he's clearly been
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vilified for
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for four plus years um and he's no
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longer the president and they should be
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focusing on the agenda ahead for the
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american people
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however he is not the only beneficiary
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or the only person
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or developer to use uh this 1031
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exchange
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many many developers around the country
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and investors
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uh small medium and large have used this
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this is something that
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is used by thousands and tens of
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thousands of investors annually
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so to zero in and make this about him um
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is misguided and disingenuous but more
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importantly i guess they're using it to
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sell
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taking away something that the average
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investor would benefit from
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and otherwise i think if people dig more
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into
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who benefits from the 1031 exchanges
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they would find
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that it's more of the average person and
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that the trump of the world
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um are unique in that equation because
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they're very few developers that are
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making that kind of sizable
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um 1031 exchange in the birthplace
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right don i know you you have major
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investments in big cities
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uh there's a lot of rumbling about this
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summer like there's going to be hell in
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major
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metropolitan areas bracing for crime
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waves
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and we've had this conversation about
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the fate of american cities these large
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cities
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where are you right now i mean if this
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stuff does materialize what does it mean
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for these cities that are struggling to
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come back from these covet lockdowns
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well i mean all cities aren't created
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equally correct so for example
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take a look at miami and south florida
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miami west palm beach are
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are booming um if you look at the
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sunbelt states
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they're booming it's really the higher
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tax states that are also
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unfriendly to businesses and new york
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city unfortunately tops the list there
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and i think that new york city is going
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to have to become more competitive
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as i've said all along but also they've
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got to get public safety under control
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um people do not feel safe walking
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around new york city
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and that's because of some of the
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policies that are implemented
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recently and uh and those policies have
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to be adjusted so i do believe
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that the combination of
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of remote working of the ability to
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use technology to communicate avoid
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meetings
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along with the diminishing quality of
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life
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in major cities especially in the
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northeast are going to be challenging
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but they'll present some great
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opportunities and i think that you're
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going to see
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one thing in new york city i think we'll
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see bounce back quicker
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is tourism i think that uh you know
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people will want to come to new york
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except if they feel unsafe
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and so um i think our big risk for new
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york and other
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major cities is crime and until we get
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that under control
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we're not going to have a broad recovery
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but these other cities are going to do a
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lot better
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let's just hope the tourism doesn't
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become like rome right the ruins of new
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york
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that used to be the tallest building in
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the world hey don i wish we had more
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time there's so much more i wanted to
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ask you but i'm out of time
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thank you so much and i really
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appreciate your wisdom it's always
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enlightening
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thanks thanks for having me
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