On Thursday, President Joe Biden offered his 2024 budget proposal which calls for an unprecedented tax increase of nearly $4.7 trillion. The plan also calls for cutting the federal deficit by $3 trillion over 10 years. The budget proposal is largely seen as a lead-up to Biden's re-election campaign.

The 1031 transfer, or what the IRS calls a like-kind exchange, is a loophole that has let real estate investors avoid paying capital gains taxes by using those funds to purchase a similar property elsewhere. To remedy this, the Biden administration is calling for the end of this loophole, which they say would add $19 billion to the budget.

This isn't the first time Biden has targeted the 1031 Exchange. In 2020 his 'caring economy' plan proposed ending it in order to fund universal preschool and a childcare tax credit. Last year, he proposed a cap