March 27, 2018
What's on the Real Estate horizon due to the Tax Act?
- Transactions with REITs will be much more popular
So, if that income is earned directly it's subject to the top bracket, at 37%. And certain expenses and carrying on those activities, which would normally be treated as investment expenses, wouldn't be deductible for individuals. If it's income earned by a REIT, one, your net owner's expenses against that income so you get the benefit of the deductions and, two, the income is subject to the 20% discount for tax based on the 199 Cap A Deduction. So REITs are going to become much more popular in planning going forward.