🎗Cushman & Wakefield Addresses the CRE Implications of Tax Reform in The Great Tax Race.
Investment and capital markets: The majority of direct U.S. CRE investment, 61%, is held by pass-through entities – only 9% is held by corporations.
Another 29% is held via direct or indirect tax-exempt entities. Passive investors in pass-through entities are likely to benefit substantially from lower rates under the House plan, but their eligibility for tax deductions is limited under the Senate proposal by wage provisions.
REITs and publicly-traded partnerships, however, would be eligible for the full deduction without regard to the wage limitation.
Should the Senate proposal be enacted, expect to see a shift over time towards REITs, as well as conversions to corporate structures.
Cushman & Wakefield
How The Tax Bill Affects City Real Estate
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