Trump’s Tax Plan Could Mean Big Things For Commercial Real Estate
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President Donald Trump unveiled his specific tax plan this week, calling for a large business tax rate reduction and lower individual taxes. As the details are ironed out, the commercial real estate implications are becoming increasingly clear.
Experts said commercial real estate investors are likely to benefit from a lower corporate tax rate under the president’s plan, which aims to slash corporate taxes from 35% to 15%, National Real Estate Investor reports. The plan would also eliminate the estate tax, which would be a boon for wealthy family-owned real estate firms.
Treasury Secretary Steve Mnuchin said the plan aims to create a territorial taxation system where U.S. businesses only pay taxes on income made in the U.S. That would aid major real estate firms by eliminating tax costs on properties held overseas.
While the benefits are clear, there remain several glaring uncertainties. There has been no definitive word on a border adjustment tax, which would significantly impact the retail sector, nor has there been much discussion of possible changes to how carried interest will be taxed.