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How Will Tax Reform Affect CRE, Commercial Real Estate and CRE Investors?

I believe,
“Real estate does well in periods of positive economic growth, and tax cuts will lead to higher levels of economic growth and higher levels of rent and higher real estate values.”
“With so much speculation and many unknowns, it is really almost impossible to provide intelligent advice,” but we will see tonight it will pass.

The 1031 exchanges will likely to survive the tax debate, although their existence is being threatened by some members of Congress. Doing away with these exchanges—used in an estimated 10 percent to 20 percent of commercial real estate deals largely as a way to defer capital gains taxes—would help finance proposed tax cuts.
Well the last comprehensive revision of the U.S. tax code was in 1986, when President Ronald Reagan signed the bipartisan Tax Reform Act of 1986.  Since then, income tax rates have increased and the code has become more complex, leading many political leaders to call for a rewrite and updating of the current tax code ever since 2000.  Goals for tax reform are varies from law makers the senate or the house and other businesspeople, but we all want simplification, increasing the global competitiveness of American businesses (Small, and conglomerate ), promoting job growth, and increasing the fairness of the tax system on all level of our social communities.
Reduction of taxes for pass-throughs
Partnerships, S corporations, LLCs and sole proprietorships would be among the corporate entities that would gain from a proposed drop in the tax rate on pass-through income from a maximum of 39.6 percent (above the current top corporate rate of 35 percent) to a maximum of 23 or 25 percent.

Repeal of state and local property, sales and income tax deductions on federal tax returns
By one estimate, the bulk of these deductions benefit taxpayers earning at least $100,000 a year, which would include HNW (high net worth club is $1 million in liquid financial assets. An investor with less than $1 million but more than $100,000 is considered to be “affluent” or perhaps even “sub-HNWI.”)individuals.

It’s anybody’s guess as to what will happen with the federal tax reform plan being scrutinized in our nation’s capital. But experts still have some sense of how the tax proposal could help shape real estate investment strategies for investors, I spoke to two senators they said it will pass and maybe they will need the VP ‘s help to pass it.
Kambiz Merabi LA 12/1/2017
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