Thursday, December 7, 2017
Real Estate Industry Exempt from Trump Tax Plan
The tax code is currently in the process of being rewritten by Congress and it seems that real estate will be the only industry that will not be limited. Some industries, such as car dealers, oil and gas pipeline managers, cruise lines, private equity and craft beer and wine producers, did well through tax cuts, but not as well as real estate. House and Senate Republicans both offered large reduced rates towards family-owned firms, partnerships and corporate giants across the board, but commercial real estate was left untouched.
Tax deference on exchanges of similar kinds of property affected most industries. New limits on deductions for interest payments were introduced for most businesses. (For example: pharmaceutical companies and domestic manufacturers no longer have some industry-specific breaks, such as the tax credit for “orphan drugs”, in exchange for lower rates.) But crickets chirp when real estate is brought up; no tax deference on 1031 exchanges proposed; no limits on interest deductions.
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