Tax Reform: What it means for CRE

Capitol Building at night

As reported by NAIOP Corporate, the tax reform legislation recently passed into law by Congress has significant beneficial impacts for the commercial real estate industry. Among other changes, the legislation 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.
  • Retain in part the historic preservation and rehabilitation tax credit, the New Markets Tax Credit, and the tax exemption for private activity bonds (PABs).

NAIOP Corporate has prepared a brief summary of the major provisions affecting commercial real estate (PDF), along with links to the text of the legislation.

As NAIOP President Thomas Bisacquino wrote in an email on this update: In any major legislation of this size and scope, there are sure to be unforeseen results that will need to be addressed in subsequent technical corrections bills, and NAIOP will be there to ensure that the interests of our industry are represented.

Image: United States Capitol at Night by John Brighenti via Flickr

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