Building  Owners  and  Managers  Association  International

Building Owners and Managers Association International

Tax Reform Bill Analysis

Baclground advocacy header.jpg 
 

On December 19, the U.S. House of Representatives passed a comprehensive tax reform package, H.R. 1/S. 1, by a vote of 227-203.  The bill was a compromise struck between the House and Senate’s previous tax bills.  The Senate passed the compromise bill the next day, December 20. This bill was signed into law on December 22 by President Donald Trump. H.R. 1, the “Tax Cuts and Jobs Act,” is a sweeping tax rewrite that could creat ripple effects throughout the U.S. economy for decades. Download PDF.pdf

Tax Plan.JPG

*Leasehold deprecation, now referred to as Qualified Improvement Property, was permanently granted a 15-year class life. However, that language was left out of the final bill, in a drafting error. Legislative staff, the IRS, Treasury and industry are working hard to make the technical correction as soon as possible. Any correction will almost certainly be retroactive effective to property placed into service after December 31, 2017.

** Temporary full expensing (referred to as 100% bonus depreciation) was a part of the legislation however due to the drafting qualified improvement property drafting error, it currently does not qualify. Legislative staff, the IRS, Treasury and industry are working hard to make the technical correction as soon as possible.

Details of Interest Deductibility: A Closer Look At the Intent of the Tax Cuts and Jobs Act of 2017

ADS 4-25.png