Trump tax plan update: A boon for real estate agents?

  • Agents with $100,000 in business income would take home 6.2 percent more under the Trump business tax proposal.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

President Trump’s first 100 days came and went without a signature piece of legislation, despite promises to the contrary. One of Trump’s campaign pillars was tax code reform -- making the code simpler to navigate and cutting rates for both individuals and businesses, which his administration believes will spur massive economic growth. In my previous article, I wrote about how Trump’s initial campaign proposal would slash rates for individuals and the effect on agents’ bottom lines because many independent agents are structured as pass-through entities. The benefit for most agents would be minimal, but positive: for the agent with $100,000 in gross business income, their profit would increase by roughly $2,000. On Thursday, the Trump Administration dropped another tax bombshell: a proposed a rule change to allow pass-through entities like LLCs, partnerships and S Corporations to pay a flat 15 percent business tax, rather than tax income at personal rates, which (if passe...