Building  Owners  and  Managers  Association  International

Building Owners and Managers Association International

Tax Reform

BOMA Position

The Building Owners and Managers Association (BOMA) International supports comprehensive tax reform policies that encourage capital investment in commercial real estate and provide long term certainty and stability to the marketplace. Comprehensive tax reform policies should not discriminate against real estate as an investment class, and should not retroactively tax imbedded investments. Tax reform should create and adhere to depreciation schedules that closely reflect dataproven market reality for buildings and building components. Comprehensive tax reform should maintain section 1031“likekind” exchanges and a low tax rate on capital gains, including carried interest, to incentivize investment.​ 

Background

Since the Tax Reform Act of 1986, our tax code has exponentially grown in complexity with added deductions, credits and other incentives. Many of these elements were enacted temporarily with a need to be renewed on an annual basis, leading to economic uncertainty.  Consequently, simplifying the tax code has been both a topic of thoughtful policy writing as well as hot-button political talking points all aiming to make the current version of tax code simpler while at the same time generating sufficient revenue for federal government expenditures.

The 115th Congress and the new Trump Administration have both proposed significant changes to the tax code that would include full, immediate expensing of capital while removing the deductibility of interest as well as the repeal of like-kind exchanges and carried interest. These plans represent unchartered economic territory for commercial real estate and while their outlook is unclear, with a unified Congress legislation could move quickly.           ​

Recent comments BOMA has submitted

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