Commercial Real Estate Pro Network
About This Show
Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss todays opportunities, problems & solutions in Commercial Real Estate.
Most Recent Episode
CREPN #135 - Tax Plan Impact on Real Estate Investment Strategies with Jonathan McGuire
3 days ago
The new Tax Plan will affect Real Estate Investment Strategies mostly for the better. President Trump signed the revised Tax Plan into law effective for tax year 2018. There has been a lot of speculation up till now about how it will affect real estate investors. I spoke with Jonathan McGuire, CPA from the Real Estate team at Aldrich Advisors to sort out the changes, good & bad. Tax Plan Summary Highlights 1031 Exchange: 1031 Exchange remains unchanged for real estate investors. The deferral of gain on like-kind exchanges is only allowed with respect to real property that is not held primarily for sale. Tax Pass Through: Owners of certain pass-through businesses, S Corps, partnerships, & sole proprietorships, will be allowed to deduct up to 20 percent of qualified business income for tax years beginning after December 31, 2017. Carried Interest: The new tax law requires that in order to qualify for Capital Gains, the investment must be held for more than 3 years, compared to the prior 1 year standard. This could affect your plans if you originally planned to get out after one year. Section 179 Equipment purchased to operate & maintain a property can be expensed at 100% of the purchase price up to $1,000,000. This does not include real property; land & buildings. Changes to Individual Itemized Deductions Previously, individuals could write off all mortgage interest and local property taxes against income to lower the federal tax obligation. This is no longer the case. Mortgage Interest: Now, the portion of mortgage interest attributable to the first $750,000 is all that will be allowed. These buyers already are treated differently with jumbo loan rates and terms. Additionally, deduction for home equity loans has been repealed. This could reduce the pool of investors looking to deploy
Rated 5 out of
Information on the CRE market that I don't get from any other podcasts.
Date published: 2017-09-13