A proposal by President Biden targets a tax break relied upon by investors in rental housing and other real estate.

Biden’s plan would eliminate like-kind tax deferrals on profits of more than $500,000 from property sales.

The like-kind tax break, or “1031” exchange rule, allows an investor who sells a property to put off paying taxes on the proceeds if the seller applies them toward the purchase of a similar investment property.

The president’s proposal is part of a larger push to increase taxes on the wealthy and fund the $1.8 trillion American Families Plan.

Defenders of the “like kind” tax break say it allows small business owners, including investors in rental property, to upgrade their portfolios by selling one property to finance the purchase of something larger, but without the harsh tax consequences.