Tax Reform Bill Analysis and Impact to CRE

On December 19, the U.S. House of Representatives passed a comprehensive tax reform package, H.R. 1/S. 1, by a vote of 227-203.  The bill was a compromise struck between the House and Senate’s previous tax bills.  The Senate passed the compromise bill the next day, December 20. H.R. 1 the “Tax Cuts and Jobs Act,” is a sweeping tax rewrite will have ripple effects for decades through our economy. The outlook of this final bill is positive for our industry. Real estate will continue to be taxed on an economic basis. There are both wins and losses—and, depending on how your business is leveraged and structured, new options.  Overall, we believe that these provisions will preserve the long-term health and strength of the commercial real estate industry.

Details of Interest Deductibility: A Closer Look at Your Options for Deducting Interest and the Alternative Depreciation Schedule.

Source: BOMA International