|Tax Reform Updates For Multi-Family Unit Owners - Takeaway from January Meeting
In january of 2017 representatives of the mult-family unit industry met with House representatives to discuss the upcoming tax code reform issues impacting the industry. Both positives and negatives were discussed including the one of the largest factors, the tax rates for businesses.
- The maximum marginal income tax rate of 39.5% would be reduced to 25% If President Trump's tax code reforms get enacted successfully. This has by far the largest impact of many such financial factors. As revenue's for many multi-unit properties would see significant tax savings overall. In President Trumps plan, the capital gains tax would also be reduced to 16.5%, it's lowest level ever.
- Estate taxes would also be repealed should Trump get what he wants. Although this change only effects inheritance of $10 Million dollars or more.
- Interest deductible would also be stripped away on all types of financing, including mortgages on commercial real estate as well as single-family homes. The trade off offered by Trump would be the increasing of the standard deduction up to as much as $30,000 for couples filing jointly. In combination with the lowered overall tax rates, this is though to offset the elimination of the interest deduction. Although others are debating whether that is will actually work out to be a fair trade-off.
- The House Ways and Means Committee have agreed to retain the Low-Income-Housing Tax Credit which is used to incentivize the building of affordable housing. This agreement was met after original drafts of the new tax reform had wanted to eliminate the tax credit.
If you are an owner of a multi-family property, there are a vast array of items that may be considered a deduction for you and your company. An answering service to handle your tenants phone calls 24/7 is also one of them. Contact TenantCalls today to discuss streamlining the communications for your properties.