Possible capital gains changes with new administration. How would the timing potentially work?
I am looking to sell my business property fairly soon.  Operations have stopped due to COVID.  I’ve owned this building for decades and am looking at some pretty large capital gains (a little less than 2 million).  

There’s a lot of talk about Biden increasing capital gains taxes potentially up to over 40%.  If I sell the property in 3-6 months and then legislation is passed later to address capital gains changes, could it potentially retroactively affect my sale?  Or would the capital gains be based solely on the time of sale?
[{"id": "glvjgmp", "text": "It won\u2019t retroactively affect your sale. Luckily we still have the 1031 exchange mechanism which allows you to defer taxes. I can\u2019t stress this enough. 1031 into a income producing property with minor debt assumption on your part. Than refinance. Instead of paying taxes on the sale your refinance would be tax free allowing you to touch some to all of the equity you have now while creating an asset with residual income.", "replies": [{"id": "glvjx3t", "text": "Thank you for the quick response.  The issue with our property is that I am a 49% owner and my business partner is a 51% owner.  They want to sell and are going to take the money and deal with the tax implications.  Would I be able to do some sort of 1031 exchange with my portion (49%) of the sale proceeds?", "replies": [{"id": "glvmumk", "text": "The only mechanism I am aware that would allow you both to split with different tax strategies is to restructure as a tenant-in-common (TIC). That being said this needs to be done well in advance of a sale in order to have legitimacy in the eyes of the IRS. I've been told by those that have done it 1+ years in advance. And even then this can be a case by case basis depending on your business/property/current ownership structure. I would reach out to an attorney and a 1031 intermediary for more info on your specific situation. More detailed info here: [http://www.exeter1031.com/article\\_1031\\_exchange\\_partnership\\_interests.aspx](http://www.exeter1031.com/article_1031_exchange_partnership_interests.aspx)", "replies": [{"id": "gm45578", "text": "Yea, avoid a drop and swap if you can. It sucks that your business has been halted but you might save more on taxes by waiting!", "replies": [], "depth": 4}], "depth": 3}, {"id": "glvn1sk", "text": "Call a 1031 attorney.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "glvoez7", "text": "50 / 50 whether new taxes take effect in 2021 or 2022.  Administration seems busy with COVID but unfortunately you might not know the tax rules that govern your transaction until afterwards.  Not an attorney but I'm working on tax planning right now.  Calling a1031 attorney is probably a good idea", "replies": [{"id": "glvpig0", "text": "Let\u2019s say we close on the sale in May 2021 with no new legislation passed at the time.  Then in October the Biden administration passed a sweeping tax reform bill that modifies the capital gains rates.  Could it conceivably be written to be retroactive to cover all of 2021?", "replies": [{"id": "glvsk1b", "text": "You'll know about any changes long before they take affect. Also, for what it's worth Biden isn't a progressive. He has some \"proposals\" that sound scary, but in reality he isn't going to change much. \n\nEither way you should be working with a CPA and tax attorney, not reddit.", "replies": [{"id": "glvx237", "text": "Agree completely.  A significant change to cap gains would be years in the making, and extremely unpopular.  There are easier ways to raise federal revenue without pissing off 90% of voters.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "glvsocu", "text": "I think this will also be understood better when there is a draft of the law. I usually avoid talking and mixing politics with my job, but this is being pushed mostly by a wing of the Democrat party and would require consensus which I don't see happening. A wealth tax is not an income tax. It is very difficult to both measure wealth and tax it. Most people who support this law does not understand that wealth is not liquid. Bezos cannot write a $185.7 billion check even if his life depends on it.", "replies": [], "depth": 1}, {"id": "glvvzop", "text": "I don\u2019t believe a substantial increase in capital gains would pass. Maybe 5-10%. And it wouldn\u2019t take effect immediately or be retroactive.", "replies": [], "depth": 1}]