Tax Reform and Real Estate: The Impact of the Tax Cuts and Jobs Act

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December 2017

Overview

On December 22, 2017, President Donald Trump signed the “Tax Cuts and Jobs Act” (TCJA or Act) that lowers business and individual tax rates, modernizes US international tax rules and provides the most significant overhaul of the US tax code in more than 30 years.

On December 20, Congress gave final approval to the House and Senate conference committee agreement on the Act, which reconciles differences in the versions of the TCJA previously passed by both the House and Senate. The text of the final bill closely resembles what was already passed by the Senate and maintains key provisions such as permanent reduction in corporate tax rates as well as temporary tax relief for pass-through businesses and individuals.

There are a variety of provisions in the TCJA that are expected to be particularly impactful on the real estate industry and these are addressed in more detail in the analysis below.

For background and a detailed discussion of the broader impact of the TCJA, please see PwC’s Tax Insight,Congress gives final approval to tax reform conference committee agreement. PwC’s Tax Policy team also offers tax reform insights as part of its Inside Tax Policy series. For more information and to subscribe to a free, two-week trial of Inside Tax Policy, please see Inside Tax Policy: Watch policy unfold.

The takeaway

Today’s enactment will have a significant impact on the real estate industry. Taxpayers should begin to analyze how their federal and state tax calculations may be impacted. For our most recent updates, please see Inside Tax Policy: Watch policy unfold.

Contact us

Brian Rebhun

Asset and Wealth Management Tax Leader, PwC US

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