Middle Market Digest: This Week in the South and Mountain Regions

As the new tax plan makes its way through the process, real estate investors are finding few major downside challenges, according to Marcus & Millichap. However, the nuances of the new tax environment could hold subtle but significant implications that investors will need to consider. Key findings: Few substantive changes to 1031 tax-deferred exchanges, and business-interest deductibility or depreciation rules are widely considered positive by investors. Changes to carried interest, pass-through income, corporate tax rates and individual tax rates could cause investors to reevaluate 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, says the report.—Lisa Brown

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