McGuinness Quoted on Potential Tax Reform Benefits for Real Estate Companies
Partner and Real Estate Practice Group Leader Christine McGuinness was quoted on how the recently passed tax reform bill could benefit smaller real estate firms.
The bill created not only a 20 percent deduction for all pass-through companies, but also an extra cut for firms with small headcounts. Those companies can deduct 2.5 percent of the purchase prices of all their depreciable property.
“A lot of the bigger shops have their own internal construction department. But there are many, many developers out there that sub it out, so I do see that as a big incentive,” Christine said.
This benefit also incentivizes companies to consider restructuring to qualify as a pass-through company.
“I do think that will maybe be the next thing you see from this: How do we become a pass-through?”
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