Building  Owners  and  Managers  Association  International

Building Owners and Managers Association International

Tax Reform Bill Analysis

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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 the PDF version here

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* Temporary full expensing was a part of the compromise legislation however it was accidentally left out of the final bill passed into law and signed by the President. 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 Your Options for Deducting Interest and the Alternative Depreciation Schedule.

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The outlook of this final bill is positive for our industry. Real estate will continue to be taxed on an economic basis. There are both wins and lossesand, depending on how your business is leveraged and structured, new options.  Overall, we believe that these provisions will preserve the long-term health and strength of the commercial real estate industry.