Steven Meier and John Napoli to Present Strafford Webinar "Tax Reform: Impact on REITs, Real Estate Businesses and Investors"
Pass-Through Business and Interest Deductions, Cost Recovery, Carried Interest, Sale of Partnership Interests, and More
Steven Meier and John Napoli, co-chairs of Seyfarth's Tax practice, will be presenting the Strafford webinar "Tax Reform: Impact on REITs, Real Estate Businesses and Investors," on April 25, 2019.
The final tax reform bill became law in late 2017 and the IRS offered some guidance on interpretation and implementation of the tax reform provision in 2018 and 2019. Many changes carried the potential to disrupt real estate, while other changes impacted REITs, real estate businesses, and real-estate investors. Real estate counsel should be conversant on these changes.
The tax reform law creates a new 20 percent tax deduction for pass-through entities. It creates a new “business interest” deduction limitation but permits certain real estate businesses to elect out of the limitation. It also modifies existing cost recovery rules, maintains like-kind exchanges, but only for real estate, and adds a new three-year holding period for carried interests. Finally, it adds a provision that allows “opportunity zone funds” to purchase and develop real estate in certain designated areas (“opportunity zones”) in a way that will generate significant tax benefits for their investors.
The panel will discuss these and other key issues:
The state of guidance from the IRS
Pass-through business deduction: Updates on 199A
Business interest deduction; applicability to real estate businesses
Cost recovery for real estate businesses
Like-kind exchanges; potential implications of elimination for all asset classes other than real estate
Carried interest; holding period requirements