Real Estate Investors Abandon § 1031 Exchanges in Face of Possible Capital Gains Tax Increase

Interesting article in today's Wall Street Journal:  Property Investors Fear Gains-Tax Rise, Shift 1031 Strategy, by Arden Dale:

Real-estate investors worried that a new administration will raise capital-gains tax rates are starting to abandon a popular tax-deferral strategy to pay taxes now while rates are low. The trend is more pronounced when bare land is involved, but investors with other kinds of business property may also save by paying capital-gains tax when they sell instead of deferring it, according to financial advisers. ...

Gary Gorman, author of the book "Exchanging Up!," said some people believe the current 15% tax rate on long-term capital gains could go as high as 20% to 25% if a Democrat is elected president. "Now the question is, 'Do I want to pay 15% now, or 20% or 25% five years from now?'"