Impact of Repealing 1031 Like-Kind Exchange Rules
MY RECOMMENDATION FOR 2021 - Sell your investment property, utilize the equity for the down payment, leverage low interest rate debt, buy a new property, and take advantage of a 1031 exchange while it is still available.
According to Bloomberg News, a Biden campaign official has said that “Biden administration would take aim at so-called like-kind exchanges, which allow investors to defer paying taxes on the sale of real estate if the capital gains are reinvested in another property. The official also said they would prevent investors from using real-estate losses to lower their income tax bills.” 
There will be unexpected results if the 1031 exchange is altered. If you have not followed the potential elimination of the use of Section 1031 of the Internal Revenue Code, it is targeting certain high net-worth investors. This could negatively affect investors, small business owners, and the overall economy.
According to the Biden campaign, “The plan will cost $775 billion over 10 years and will be paid for by rolling back unproductive and unequal tax breaks for real estate investors with incomes over $400,000 and taking steps to increase tax compliance for high-income earners.”
Colin Cosgrove with Inland Securities Corporation stated, “There are long term benefits from 1031 exchanges by deferring capital gains and depreciation taxes. Section 1031 of the Code is an engine for growth that pays for itself many times over. This includes jobs, taxes, increased revenue to states and municipalities and potential financial security for the individual investor.”