Marcus & Millichap Explains Subtle Affect of Proposed Tax Rules on CRE
As the new tax plan recently signed into law by President Trump makes its way toward finalization, real estate investors are finding few major downside challenges. However, Marcus & Millichap notes in a special research report, the nuances of the new tax environment could hold subtle, albeit significant implications that investors would be wise to consider.
The plan retained numerous key CRE provisions, and as 2018 unfolds, the uncertainty and caution that pervaded investment decisions in 2017 are expected to fade. The new tax plan offers generous tax cuts to corporations and pass-through entities such as LLCs, and Marcus & Millichap says investors may see the new tax rules as an opportunity to reconfigure their portfolios.
Among Marcus & Millichap’s key findings:
-The 1031 tax-deferred exchange, the mortgage interest deduction for investment real estate and asset depreciation had few material changes. This consistency in tax law will enable investors to move forward with most of their existing investment strategies.
-Changes to carried interest, pass-through income, corporate tax rates and individual tax rates could cause investors to reevaluate their business structures and holdings.
– After-tax yields will become an increasingly compelling attraction of real estate investment. The aggressive depreciation options and reduced taxes on pass-through income will be focal points for investors.
Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services.
In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company.
In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix.
Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator.
Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements.
Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.