Today Congress completed the passage of The Tax Cuts and Jobs Act, H.R. 1, and the President is expected to sign it into law shortly. Most of its provisions take effect in 2018, and a few take effect now. The following is a summary of the provisions directly affecting real estate:
Rental Property Owners
- IRC Section 1031 Like-Kind Exchanges will still be allowed for real property transactions.
- No changes to mortgage interest and property tax deductions.
- Pass-Through Entities: Last minute (and controversial) addition of real estate partnerships, LLC’s, and S corporations as “pass-through entities” for purposes of sharing the benefits of the corporate rate reductions. Consult a professional if relevant.
Note: Amounts stated…