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NAIOP’s Take on How Sweeping Tax Reform Plays Out in CRE
The Tax Cuts and Jobs Act of 2017 is expected to boost economic growth by reducing tax rates and simplifying the tax code, observes NAIOP. The bill was signed by President Donald J. Trump after being passed by Congress over the holidays.
NAIOP’s Thomas J. Bisacquino says, “This legislation represents an important victory for NAIOP members and the commercial real estate industry. The first major tax reform in more than three decades, the Act recognizes the important contribution that commercial real estate is making to the economy by supporting pro-growth initiatives and acknowledging the long-term nature of commercial real estate investment.”
Bisacquino notes that this reform will:
– Preserve Section 1031 like-kind exchanges for real estate
– Continue taxing real estate carried interests held for three years as capital gains
– Preserve the deductibility of business interest expense for real estate trades or businesses
– Reduce the tax rate for many pass-through businesses, including many in real estate
– Lower the tax rate for corporations to 21%
– Double the estate tax exemption
– Retain, in part, the historic preservation and rehabilitation tax credit, the New Markets Tax Credit, and the tax exemption for private activity bonds (PABs)
For comments, questions or concerns, please contact Dennis Kaiser
