Steven Meier and John Napoli to Present Strafford Webinar "Tax Reform: Impact on REITs, Real Estate Businesses and Investors"

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.