7 reasons Trump’s tax plan is good for real estate investors

How to cash in on investing post-tax reform

Faster. Better. Together.
Inman Connect San Francisco, Jul 16-20, 2018

Although the Trump tax plan, known as the "Tax Cuts and Jobs Act," was promoted as a tax cut for the middle class, the major benefits go to corporations, entrepreneurs and real estate investors. And most noteworthy are these top seven positive changes for real estate investors. 1. 20% pass-through deduction This new 20 percent pass-through deduction originally was proposed to keep small businesses at the same or lower rate than corporations. At the last minute, it created benefits for real estate investors. And here’s how it works: Generally, business owners and real estate investors receive a 20 percent deduction of their net income after depreciation and amortization. Amortization is taxable income from the business of investing. And the deduction cannot be more than the higher of two things: 50 percent of W-2 wages paid to employees of the company 25 percent of W-2 wages paid to employees of the company plus 2.5 percent of the original cost of buildings and e...