WASHINGTON, DC–Thursday morning the US House of Representativesunveiled its long-anticipated $1.51-trillion tax reformmeasure, a sweeping piece of legislation called the “TaxCuts and Jobs Act.”
To cut to the chase for our readers: the bill has largely goodnews for the commercial real estate industry. The capital gainsincentive is retained as are the current like kind exchange 1031rules. The bill also recognizes that the cost of real estate debtis a necessary business expense and interest on debt used in a realestate trade or business would continue to be deductible.
Mortgage Interest Deduction Cap, Pass-through Entities
The industry didn't get everything it had wanted. The bill doescap the mortgage interest deduction to $500,000 instead of offeringa tax credit — a measure that the National Association of HomeBuilders had lobbied for, and lost.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
