With every tax bill there are winners and losers. Given the complexity of any major tax overhaul, it can take months or even years to figure out who those winners and losers actually are. Yet there is one indisputable winner we can point to immediately: commercial real estate investment.
On a range of points, real estate makes out like a bandit under the new law. Let’s take a look at a few of the provisions that will likely fuel the ongoing boom in commercial real estate.
Pass-Through Entities Get a Special Pass
Pass-through entities such as partnerships and limited liability companies are set to benefit greatly from the new law. These are companies that do not pay direct corporate tax, but instead “pass through” their gains and losses to the individual members of the company or partnership. Under the new law, investors in pass-through entities will benefit from a new 20% deduction.
Many businesses from an array of sectors are set to benefit from the deduction, since many use pass-through structures. Real estate investment is almost always conducted through such entities, so it will be a sector to benefit richly after the late-stage inclusion of property investment under the provisions of the bill.
Expanding Options for Expensing
Some commercial real estate, especially non-residential, will benefit from the new law’s expanded coverage and scale of Section 179 of the United States Internal Revenue Code, which covers certain kinds of depreciation deductions. Specifically, Section 179 states that a taxpayer may choose to deduct the cost of certain types of property as expenses, rather than capitalizing the cost of the property. The new tax law will double the current dollar limitation on the amount that can be expensed each year from $500,000 to $1 million.
https://seekingalpha.com/article/4132973-big-winner-tax-bill-commercial-real-estate
Commercial real estate.
I guess we get the bill now for all the mini malls vacated in the 2008 financial collapse raping.
Although I do have to say…
These current vacant properties could be used for meth…prostitution. .drugs and arms running.
Because. ..
That’s how you make America great again.
Fk morals. ..scruples and discernment and knowing the differences between what is right..
and what is wrong.
It’s whats best for me.
Everyone else can suck an egg.
Because. ..
I’m more special than you.
In fact…
I have a piece of paper to prove it.
Dang flee, you hit it out of the park again! Just WHAT exactly makes America “great”?
Well, our education system is in the toilet as are our government, money, social, infrastructure, healthcare, high-tech stuff….you name it, and it’s been out-sourced or so corrupted that it just doesn’t work anymore…however, there are a few things that ‘Merca does well…booze, whores and stuff that kills people!!
The way to make Amerika great again is to stick with what works!
I say, we all get sloshed on fine Kentucky booze, a small-town microbrew, or mountain moonshine if you prefer…sell a shit-load of bombs and night-vision goggles to some 3rd-world tin-pot dictator and take the profits to the titty bar!!! There, you see? Americans would call that economic stimulation…trickle-down wealth as Reagan used to say…Now, belly-up everyone…the first round’s on me!!