March 27, 2018
New limits impact tax planning:
- Deductions for interest limited to 30% of income before interest, taxes and depreciation
- Real Estate companies can elect out by lengthening depreciation for assets
Real estate companies have the benefit they can elect out of that provision, but in order to do so, they have to lengthen the terms of depreciation for the real estate assets. That would be 40 years instead of 39 for commercial properties, 30 years instead of 27.5 for residential properties.