As the new tax plan makes its way toward finalization, real estate investors are finding few major downside challenges. However, the nuances of the new tax environment could hold subtle but significant implications that investors will need to consider.
Key Findings:
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Few substantive changes to 1031 tax-deferred exchanges, business interest deductibility or depreciation rules widely considered positive by investors.
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Changes to carried interest, pass-through income, corporate tax rates and individual tax rates could cause investors to reevaluate their business structures and holdings.
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Changes to tax rules and deductions could impact demand for apartments, student housing and healthcare real estate specifically.
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